Ethanol in India’s Energy Transition
Ethanol, a biofuel derived primarily from sugarcane and grain, has been championed worldwide as a cleaner alternative to fossil fuels. Its adoption reduces dependence on crude oil imports, cuts carbon emissions, and offers farmers an additional revenue stream. India, the world’s third-largest automobile market, has committed to an ambitious target of blending 20% ethanol with petrol (E20) by 2025, in line with Prime Minister Narendra Modi’s clean energy agenda. The shift has been gradual since 2023, but the recent withdrawal of older blends such as E5 and E10 from nearly all of the country’s 90,000 fuel stations has forced motorists to fully rely on E20, triggering both debate and apprehension.
Motorists Raise Concerns
In recent weeks, drivers across India have taken to social media to express frustrations over falling mileage and questions about vehicle durability. While some claimed their cars were consuming significantly more fuel, others complained about a lack of clear communication from automakers. Public interest litigation challenging the sudden switch to E20 is now pending before the Supreme Court, highlighting how consumer unease has grown into a legal and political issue.
Automakers’ Clarification
Seeking to calm anxieties, the Society of Indian Automobile Manufacturers (SIAM), representing major brands such as Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra, and Toyota, convened a joint press briefing in New Delhi. SIAM’s executive director, P.K. Banerjee, acknowledged that E20 fuel reduces mileage, but clarified that the impact is limited to 2%-4% under controlled conditions. He dismissed widespread claims of mileage dropping by half as “misinformed and exaggerated.”
More importantly, Banerjee assured motorists that the use of E20 is safe. “Millions of vehicles are already running on E20. Not a single case of breakdown or engine failure has been reported,” he said. He also pledged that any issues arising would be covered under vehicle warranty and insurance claims, reinforcing consumer protection.
Impact on Older Vehicles
Carmakers did concede that older vehicles, designed for earlier blends like E5 or E10, might face slightly larger drops in efficiency. However, industry experts stressed that the problem lies more in real-world driving conditions than in the fuel itself. “On-road mileage can vary based on driving habits and maintenance, which explains why some users report higher differences,” said C.V. Raman, executive committee member at Maruti Suzuki.
Nitin Gadkari’s Advocacy
Union Minister for Road Transport and Highways, Nitin Gadkari, has been one of the strongest proponents of ethanol adoption. He argues that ethanol offers three assured advantages—safety, economy, and guaranteed national benefit. By replacing costly imported petroleum with domestically produced ethanol, India not only cuts its import bill but also boosts farmers’ income and reduces greenhouse gas emissions. Gadkari has repeatedly emphasized that while minor efficiency losses exist, the broader economic and environmental gains far outweigh them.
Industry Challenges
The rollout comes at a time when automakers are already grappling with weaker sales and shortages of rare-earth magnets essential for electric vehicles. Confusing initial communication about E20 compatibility added to consumer distrust. Still, industry leaders now appear united in projecting ethanol as a long-term solution, even if the short-term adjustment is uncomfortable.
A Transitional Adjustment for a Sustainable Future
India’s shift to ethanol-blended fuel is a bold step toward energy independence and cleaner mobility. While concerns about mileage losses are not unfounded, they are modest compared to the exaggerated fears circulating online. Assurances from both the government and automakers on safety, warranty protection, and national benefits are vital in building public trust.
The short-term inconvenience of slightly higher fuel consumption must be weighed against the long-term vision: reduced carbon emissions, a boost to rural incomes, and lowered oil import dependency. If communicated and managed effectively, E20 could emerge not as a problem but as a pivotal milestone in India’s journey toward sustainable energy.
(With agency inputs)
