The government has not yet decided to raise ethanol blending in petrol beyond the current 20% level, Minister of State for Petroleum and Natural Gas Suresh Gopi told the Rajya Sabha on Monday (July 20, 2026), adding that any future increase would follow further scientific study and consultation with industry.
“So far, no decision has been taken by the government for increasing ethanol blending with petrol beyond 20%,” Mr. Gopi said in a written reply to a question. Any move higher would come “only after detailed scientific and technical studies and consultations with all relevant stakeholders, including automobile manufacturers, Oil Marketing Companies and research institutions,” he said.
Mr. Gopi said India reached the 20% blending target five years ahead of schedule, with average blending rising from about 1.53% in 2013-14 to 20% in the 2025-26 supply year, after more than two decades of phased rollout.
Since 2014-15, he said, the programme has saved over 1.97 trillion rupees in foreign exchange, displaced nearly 316 lakh tonnes of crude oil, avoided about 952 lakh tonnes of carbon dioxide emissions, and generated more than ₹1.66 lakh crore in additional farmer income.
The minister said the government had received no “widespread or substantiated complaints” from vehicle manufacturers, automobile associations or consumer groups over engine failure, fuel-pump problems, corrosion or water contamination linked to E20 fuel, though it had taken note of concerns raised in media and on social media and examined them scientifically.
More than 20 crore two-wheelers and over 3 crore petrol cars — including many built before E20 certification – have run on E15-plus and E19-E20 fuel for over three-and-a-half and two-and-a-half years respectively “without any verified evidence of widespread engine failure or vehicle breakdown,” Mr. Gopi said. He cited service data from one leading four-wheeler maker covering 2.84 crore vehicles in 2025-26, including 1.5 crore non-E20-certified vehicles, that found no damage linked to the fuel, and said a leading two-wheeler maker reported similar findings.
Any mileage loss in older, E10-designed vehicles is “generally marginal,” at around 3-5%, he said, while E20 offers higher octane and cleaner combustion. Manufacturers continue to honour warranties on vehicles using compliant E20 fuel, he added.
On food security, Mr. Gopi said the 20 per cent blending target has not reduced food crop availability, as only surplus grains — determined after meeting Public Distribution System, National Food Security Act and buffer-stock requirements — are used for ethanol. 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.
He said retail sugar and rice inflation had not been affected, calling the programme a “waste-to-wealth” approach.
On water use, Mr. Gopi said the government’s approach was designed to protect water sustainability, with feedstocks diversified beyond sugarcane to include maize, whose share in ethanol production rose to about 37 per cent in 2025-26 from zero in 2021-22. Ethanol plants typically use 3-5 litres of processed water per litre of ethanol produced, he said, and distilleries are required to operate as zero-liquid-discharge units.
State-run oil marketing companies procured 705.43 crore litres of ethanol worth ₹49,577 crore in 2025-26 through June, following 1,033.31 crore litres worth ₹73,996 crore in 2024-25 and 679.04 crore litres worth ₹48,757 crore in 2023-24, Mr. Gopi said, adding that 501 ethanol suppliers are currently registered with the companies.
He said there was no proposal to mandate lower-blend or non-blended petrol at select outlets, as running parallel supply chains would raise costs and dilute the programme’s environmental and farm-income benefits.
“There is no proposal to mandate the availability of non-blended or lower-blend petrol at select retail outlets. The Government’s policy is to progressively transition towards cleaner, technologically superior and environmentally sustainable fuels in accordance with the National Policy on Biofuels and the Ethanol Blended Petrol (EBP) Programme,” he said.
Published – July 20, 2026 05:44 pm IST
