Hardeep Singh Puri explains why E20 fuel is not cheaper than petrol

The controversy boiled over this week after Union Petroleum Minister Hardeep Singh Puri strongly defended the programme. He pointed out that higher ethanol blends – E15 from April 2023, E19 from 2024, and now E20, have been introduced gradually.

According to him, 20 crore two-wheelers and 20 lakh four-wheelers have been using ethanol-blended fuel for years without any major reported problems. The minister called the growing criticism a “disinformation campaign” timed suspiciously with the launch of E85-compatible flex-fuel vehicles.

In a strongly worded tweet, Puri said, “When a policy makes India self-reliant, increases farmers’ income, and reduces dependence on foreign oil… that’s when some people’s unease suddenly spikes.”

Puri has repeatedly argued that the policy reduces India’s dependence on imported crude oil, saves foreign exchange, and gives farmers an additional income source through sugarcane and other crops used for ethanol. He also reminded critics that the ethanol blending programme was first started during the UPA government, suggesting current opposition is more political than practical.

Centre ruling out price cut on E20? Why E20 is not cheaper despite ethanol being ‘cheaper’

In an exclusive interview with CNN-News18’s Rahul Shivshankar, Minister Puri defended the policy robustly while addressing public concerns over pricing, mileage, and vehicle compatibility.

Puri explained that ethanol blending helps save foreign exchange. He stated that the government has saved ₹1.9 lakh crore by reducing crude imports. He argued that lowering the price of E20 further would mean paying farmers less for their produce, as ethanol pricing is linked to farmer incomes.

“If 20% of the blending has been done… I save ₹1.9 lakh crore. The government doesn’t set the cost. If your point is we should procure it at a lesser amount, then you’re paying your farmer a lesser amount also. Because of these factors, we are able to sell it at the lower price. If there was no ethanol blended programme and we would be buying 20% more crude… the price would be much higher,” he said.

He rejected the idea that E20 should be significantly cheaper, saying the logic of “ethanol is cheaper so fuel should be cheaper” stands on its head because the overall savings come from reduced crude imports.

Did India advance the E20 ethanol blending target by 5 years?

On being asked why India moved the ethanol blending target forward by 5 years, Puri clarified, “We did not”. He explained that targets are usually set based on past experience. He noted that India had been discussing E20 for a long time but had never been able to achieve it.

Puri injected a personal note from his time as India’s Ambassador to Brazil. “I was an ambassador of India to Brazil in 2006. I went there in Jan 2006 and stayed there till May 2008. Every possible visitor from India with an interest in the agro economy wanted to learn about their ethanol experience,” he recalled.

He pointed out that in 2006, Brazil was exactly where India is now, at E20 blending, and that it had taken Brazil a long time to reach that level.
When the Modi government took charge, the existing ethanol blending target stood at just 5%, and that too only in 10 states and Union Territories. In reality, the country was achieving only 1.4-1.5% blending overall.

Puri explained that the new government did its homework and realised biofuels were an “imperative” for the Indian economy that needed to be pursued vigorously.

“So a target was set of E10, that is 10% blending by November 2022. That’s the first point,” he said. At the same time, the government also set a 20% blending target.

The minister attributed the success of the E10 target, unlike previous failed attempts, to the government’s ability to work as one cohesive entity.

He further added that creating a successful ecosystem required coordination across multiple stakeholders, including automobile manufacturers, fuel suppliers, service stations, and other players.

Manufacturers back Government’s safety claims

A Reuters report which cited representatives from Maruti Suzuki, Hero MotorCorp and Toyota Kirloskar Motor repeated the claims that even older vehicles can ⁠run safely on E20. Maruti Suzuki said it analysed service records of 28.4 million vehicles, including over 15 million cars older than three years, and found no unusual spike in engine failures linked to the blended fuel. Hero MotoCorp has made similar observations.

Industry experts note that vehicles manufactured after April 2023 are designed to be E20-compatible, according to an earlier report by The Financial Express. They argue that older vehicles may face only marginal issues like slightly lower mileage and gradual wear on certain rubber and plastic components, and recommend regular servicing rather than avoiding the fuel.

Mileage Concerns: Official estimates vs ground reality

As the government pushes ahead with its ambitious ethanol blending programme, a sharp divide has emerged between official assertions of success and growing complaints from vehicle owners on the ground.

While the Centre maintains that E20 is safe, economically beneficial, and environmentally friendly, many ordinary motorists, especially owners of older vehicles, say the fuel is hurting their mileage and increasing maintenance costs, according to the earlier ground reports of The Financial Express.

One of the biggest points of contention is the impact on fuel efficiency. Ethanol has roughly 30% lower calorific value than petrol, which naturally leads to some reduction in mileage.

Hundreds of vehicle owners have taken to X to voice their frustration, claiming that E20 petrol is causing lower mileage and faster wear on engine and fuel system components. A frequent grievance is the lack of choice, as unblended regular petrol is increasingly difficult to find at pumps.

“Auto companies need to stop hiding and tell us clearly … can your pre-2023 models actually handle E20 fuel?” said X user Aashna. “Stop fooling the public.”

Industry officials have acknowledged a minor trade-off, estimating a 3–3.5% drop in fuel efficiency due to E20, as per the report. They also point out that the higher octane rating of ethanol could allow future engines to run at higher compression ratios, potentially improving performance in newer vehicles.

However, independent surveys tell a different story. A LocalCircles survey conducted in June 2026, which received over 44,000 responses from owners of pre-2023 petrol vehicles across 305 districts, found significantly higher reported issues.

According to the survey, the proportion of owners reporting a mileage drop of over 10% jumped from 45% in May to 66% in June 2026. Similarly, those experiencing unusual increase in wear and tear or need for repairs nearly doubled from 29% to 55% in the same period.

Many vehicle owners claim their real-world experience shows losses of 8–12%, higher than the 1–6% range estimated by the Automotive Research Association of India (ARAI).

Rising Petrol Consumption: Is E20 partly responsible?

The debate has gained further traction after preliminary June data from the Petroleum Planning & Analysis Cell showed petrol consumption rising 7% year-on-year to 3,768 thousand metric tonnes despite higher retail prices.

Some analysts argue that even a small drop in mileage across millions of vehicles can contribute to higher overall fuel demand. However, others point to stronger economic growth, rising vehicle sales, expanded road networks, and increased travel as the primary drivers. So far, no official study has quantified exactly how much of the rise is due to E20.

A separate LocalCircles survey indicated that 43% of prospective vehicle buyers may now defer or cancel their purchases in the next 12 months due to concerns over E20 and the planned shift to E30 in the future.

On Tuesday, Road Transport and Highways Minister Nitin Gadkari threw down the gauntlet, challenging anyone to bring forward evidence that their vehicle had suffered damage due to E20 fuel.

In response, Tehseen Poonawalla, a Delhi-based entrepreneur and vocal supporter of the Congress party, has called for an open public discussion with the minister and said he will bring along vehicle owners who claim to have been affected by the blended petrol.

While the government continues to project E20 as a major step toward energy self-reliance and farmer welfare, the widening gap between official claims and reported consumer experiences suggests the policy faces a significant perception challenge on the streets.