Amid the controversy over the future of India's ethanol-blending programme, the government on Monday clarified that it has taken no decision to raise ethanol blending in petrol beyond the current 20% level. Replying to a question in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said any proposal to increase the blending ratio would be considered only after detailed scientific and technical studies and extensive consultations with automobile manufacturers, oil marketing companies, research institutions and other stakeholders.
Responding to a written question, Gopi said the government has achieved the 20% ethanol blending target five years ahead of schedule. Average ethanol blending in petrol has increased from just 1.53% in 2013-14 to 20% during the 2025-26 ethanol supply year, marking a major milestone in India's biofuel programme after more than two decades of phased implementation.
The minister said any proposal to increase blending beyond 20% would be considered only after extensive consultations with automobile manufacturers, oil marketing companies, research institutions and other relevant stakeholders.
Highlighting the benefits of the Ethanol Blended Petrol (EBP) Programme, Gopi said it has generated substantial economic, environmental and agricultural gains since 2014-15. According to the government, the programme has helped save more than Rs 1.97 lakh crore in foreign exchange by reducing crude oil imports, displaced nearly 316 lakh tonnes of crude oil, prevented about 952 lakh tonnes of carbon dioxide emissions and provided additional income of over Rs 1.66 lakh crore to farmers.
Addressing concerns about vehicle compatibility, the minister said the government has not received any widespread or substantiated complaints from vehicle manufacturers, automobile associations or consumer groups regarding engine failure, fuel pump damage, corrosion or water contamination due to E20 fuel. While concerns raised in the media and social media have been examined, scientific assessments have not found evidence of large-scale technical problems.
He noted that more than 20 crore two-wheelers and over three crore petrol cars, including many vehicles manufactured before E20 certification, have been operating on E15-plus and E19-E20 fuel blends for several years without verified evidence of widespread engine failures. Service data shared by leading automobile manufacturers also did not establish any fuel-related damage, he added.
The minister acknowledged that older vehicles designed for E10 fuel may experience a marginal reduction in fuel efficiency of around 3-5%, but said E20 fuel offers advantages such as higher octane rating and cleaner combustion. He also clarified that manufacturers continue to honour warranties for vehicles using E20-compliant fuel.
On concerns over food security, Gopi said ethanol production utilises only surplus foodgrains after meeting the requirements of the Public Distribution System, the National Food Security Act and buffer stock norms. Rice diverted for ethanol rose to 39.28 lakh tonnes in 2025-26 through June 30 from 31.11 lakh tonnes in 2024-25, while maize diversion stood at 67.87 lakh tonnes in the same period, down from 131.18 lakh tonnes in 2024-25. Maize accounted for nearly 37% of ethanol production in 2025-26, compared with virtually zero contribution in 2021-22. Distilleries are required to operate as zero-liquid-discharge units to ensure sustainable water use.
The minister further clarified that the government has no proposal to supply non-blended or lower-blend petrol at select retail outlets, saying such a parallel distribution system would increase costs and undermine the environmental and farmer-income objectives of the National Policy on Biofuels.