Overview
- Senior ministers Hardeep Singh Puri and Nitin Gadkari publicly rejected claims that E20 has caused widespread engine damage and said testing for higher blends remains ongoing.
- Protests and dealer complaints in early July pushed the issue into the spotlight and prompted government briefings to reassure motorists and dealers.
- ARAI tests found no broad metallic-part damage but warned that prolonged use of E20 in vehicles designed for E10 could gradually degrade rubber fuel-system parts such as hoses, gaskets, seals and O-rings.
- Automakers and industry officials say the shift from E10 to E20 typically reduces mileage by about 3–3.5 percent and that field data have not shown systemic E20 failures.
- Policy moves including a tax exemption for fuels with 22–30% ethanol and new BIS specifications have fuelled speculation about E25, but officials say any increase will be gradual and hinge on further tests, vehicle rule changes and infrastructure readiness.