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Brinks Report > Blog > Automobile > Oil Minister Clears Doubts About E20 Fuel and Its Effect on Vehicles; Says Ethanol Helps Cut Oil Imports and Supports Farmers
Automobile

Oil Minister Clears Doubts About E20 Fuel and Its Effect on Vehicles; Says Ethanol Helps Cut Oil Imports and Supports Farmers

Ankita Das
Last updated: August 8, 2025 9:55 pm
Ankita Das
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Oil Minister Hardeep Singh Puri said on Friday that petrol mixed with 20% ethanol, called E20 fuel, does not harm vehicle engines. He explained that E20 fuel might reduce vehicle performance slightly by 1 to 3%, but it does not cause any engine problems or breakdowns.

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Many people have complained about losing mileage with this fuel, but the minister said using ethanol in petrol is a big success. It helps reduce India’s oil imports and benefits farmers who produce ethanol. India started using E20 fuel years earlier than planned and will increase the amount of ethanol in petrol slowly over time.

Puri said, “Biofuels include more than just ethanol, but ethanol is very important. Engines in countries like Germany and Japan run fine on ethanol blends, and I have never heard of engine failures caused by E20 fuel.”

Read more: India’s Auto Sales Fall 4.3% in July, Tractors Buck the Trend with 11% Growth

He also mentioned that India is working on new biofuels like sustainable aviation fuel made from seaweed found on Indian coasts. Bamboo and used cooking oil are other sources being used to make such fuels. This helps the aviation industry reduce pollution and follow global environmental rules that start in 2027.

Also See: Tata Motors Q1 FY26 Results: Profit Falls 62% Due to Lower Sales and JLR Tariff Impact

Traditionally, ethanol is made from sugarcane or molasses. The minister said India has now started using maize (corn) to make ethanol, increasing its share from zero to 40% in recent years.

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