Union Minister of Petroleum and Natural Gas Hardeep S. Puri yesterday stated that the government is committed to increasing ethanol blending. However, he has yet to address key concerns regarding the lack of price reductions, the adverse impact on vehicle performance, and the risks of long-term engine damage.
The Indian government’s push to increase ethanol blending in petrol to over 20% has raised serious concerns about its impact on vehicle efficiency, engine health, and consumer costs. While the move is marketed as an environmental initiative, critics argue that it primarily benefits sugar lobbies and biofuel cultivators at the expense of the common citizen.

Despite the promise of sustainability, the financial implications of ethanol blending raise significant questions. Trinamool MP Saket Gokhale through a tweet has raised serious doubts on the ethanol-petrol mixture. “If 20% of a litre of petrol is ethanol, the overall price of petrol should logically decrease. However, there has been no substantial reduction in petrol prices to reflect this blending. Gokhale argued that with the inclusion of ethanol, petrol prices should drop by at least ₹11 per litre, given that ethanol is cheaper than pure petrol. Yet, consumers will be paying the same or even higher prices.
Ethanol has a lower energy density than petrol, which means vehicles using ethanol-blended fuel experience a drop in mileage. Studies suggest that ethanol-blended petrol can reduce fuel efficiency by 5-10%, meaning consumers need to refuel more often, ultimately spending more money despite the supposed cost benefits of blending.
For everyday commuters, this translates to higher operational costs, negating any potential savings from reduced petrol prices. The real-world impact on fuel efficiency needs further transparent evaluation by independent agencies rather than relying solely on government claims.
Another major concern is that ethanol is corrosive and can damage engines that are not specifically designed for higher ethanol content. Most vehicles currently on Indian roads are not E20-compatible, meaning their engines and fuel systems may suffer wear and tear at a much faster rate. This can lead to expensive repairs and reduced engine lifespan, putting additional financial burdens on vehicle owners.
Automobile manufacturers have voiced their concerns over the potential harm ethanol can cause to engines, especially in two-wheelers and older four-wheelers. Ethanol absorbs moisture, which can lead to rusting of metal components in the fuel system, and its solvent properties can degrade rubber and plastic parts over time.

Though automobile expert Tutu Dhawan has a different take. He says: “I am sure that the government has formulated the mix proportion with advice from experts in this field. Moreover, it will have less impact on most of the vehicles and engines but in high end vehicles like Lamborghini, Ferrari and so on, it will be a problem”.
While commenting on the pricing of ethanol mixed petrol Tutu Dhawan says: “I am sure that the government should work out a strategy to bring down the ethanol mixed petrol prices. And rightly so, as the cost will decrease for the final product and people should get the benefit monetarily.”
Critics argue that the primary beneficiaries of the ethanol push are the sugar industry and specific agricultural groups that are set to profit from exclusive biofuel cultivation. The policy shift appears to align more with industrial and corporate interests rather than providing tangible benefits to everyday consumers.
Moreover, there is scepticism regarding the environmental benefits of ethanol. While it does burn cleaner than petrol, the water and land resources required for large-scale ethanol production raise concerns about sustainability. Additionally, the potential rise in food prices due to land being diverted for ethanol crops further complicates the issue.
Consumers deserve clear answers: When will the government reduce petrol prices in line with ethanol savings? What protections are in place for non-E20-compatible vehicle owners? How will transparency be ensured in the ethanol supply chain?
While reducing dependence on fossil fuels is a noble goal, it should not come at the expense of the public. Until these questions are answered satisfactorily, the ethanol policy remains a contentious issue—one that demands greater scrutiny and accountability from those in power.