Overview
- The ministry, which published a FAQ on Friday, July 10, admitted that E20 petrol can reduce fuel economy by about 3–5% in some vehicles while stressing the blend’s higher octane and cleaner combustion.
- Officials said the E20 rollout followed years of testing and consultation with automakers, ARAI and technical bodies and that manufacturers are honoring warranties for vehicles using the fuel.
- The Centre rejected calls for selling pure petrol or E10 alongside E20 nationwide because maintaining separate supply chains across over 100,000 retail outlets would add major logistical costs and risk recent infrastructure investments.
- The government noted ethanol is procured at remunerative prices (maize-based ethanol around ₹71.86 per litre), which currently makes E20 costlier to produce than petrol at roughly $70/barrel crude, and framed blending as a move to cut crude imports and boost farmer income.
- Public complaints and political criticism, including visits by Arvind Kejriwal to service stations, have kept consumer confidence under strain and could force authorities to publish more vehicle‑level data and strengthen grievance processes.