Gadkari Dismisses E20 Concerns, Highlights Ethanol Blending Success
New Delhi – India’s ambitious ethanol blending program has reached a significant milestone, achieving 20% blending (E20) five years ahead of schedule. Road Transport and Highways Minister Nitin Gadkari has vehemently refuted claims suggesting that E20 fuel harms vehicle engines or is incompatible with a large segment of the vehicle population. He attributes the dissemination of such information to lobbying efforts by the petroleum industry, asserting that comprehensive trials have demonstrated the compatibility of E20 with even older vehicle models, referencing Brazil’s successful implementation of even higher ethanol blends without issue. The minister emphasized that these concerns are technically unfounded and based on misinformation.
Gadkari champions ethanol as a “clean and efficient fuel,” highlighting its multifaceted benefits, including reduced emissions, decreased reliance on imported fossil fuels, and vital support for the agricultural sector and rural economy. He underscores the government’s policy focus on import substitution, pollution reduction, and cost-effectiveness, questioning the rationale behind opposing a policy that demonstrably improves public health and strengthens the nation’s energy security. The initiative aligns with India’s broader strategy for sustainable development and its commitment to mitigating climate change.
The Ministry of Petroleum and Natural Gas (MoPNG) has also weighed in on the issue, issuing a statement characterizing ethanol blending as a crucial national program and denouncing attempts to undermine public confidence in it. The ministry specifically addressed concerns circulated regarding insurance coverage for vehicles using E20 fuel, categorically stating these fears are baseless. They clarified that a misinterpreted social media post triggered this misinformation campaign, emphasizing that the use of E20 fuel has no bearing on the validity of vehicle insurance policies in India. This clarification aims to dispel anxieties and encourage wider adoption of E20 fuel.
India’s ethanol sector has witnessed remarkable growth in recent years, with consistent improvements in ethanol production, blending levels, and overall capacity. This progress signifies a transformative shift in the country’s energy landscape. The government’s Ethanol Blended Petrol (EBP) Programme is central to this transformation, targeting multiple objectives, including reduced greenhouse gas emissions, decreased reliance on crude oil imports, significant foreign exchange savings, and vital support for the domestic agricultural sector. The program has injected over Rs. 1,25,000 crore into the rural economy through payments to farmers since 2014-15.
The EBP Programme has also resulted in substantial savings of foreign exchange, exceeding Rs. 1,44,000 crore, a net CO2 reduction of approximately 736 lakh metric tonnes, and substitution of over 244 lakh metric tonnes of crude oil. These achievements demonstrate the program’s profound impact on India’s economic and environmental sustainability. The program continually surpasses its ethanol blending targets, achieving 10% blending five months ahead of schedule in June 2022, 12.06% in 2022-23, and 14.60% in 2023-24. The current Ethanol Supply Year (ESY) 2024-25 has already seen blending percentages reach 19.05% as of July 31, 2025, with a peak of 19.93% achieved during July 2025 alone.
July 2025 witnessed substantial momentum in ethanol procurement, with Oil Marketing Companies (OMCs) receiving 85.3 crore liters of ethanol under the EBP Programme, bringing the cumulative offtake to 722.7 crore liters between November 2024 and July 2025. A total of 87.9 crore liters of ethanol were blended into petrol during July 2025, resulting in a cumulative blending volume of 749 crore liters across the same period. These figures highlight the accelerated pace of ethanol integration into the national fuel supply, showcasing the program’s effectiveness and its growing contribution to India’s energy independence and environmental goals. The government remains committed to further expanding the EBP Programme, solidifying its role as a cornerstone of India’s sustainable energy future.
