Why in News?
The Supreme Court dismissed a petition challenging the nationwide roll-out of 20% ethanol-blended petrol (E20), upholding the government’s policy aimed at supporting farmers, conserving foreign exchange, and reducing emissions despite concerns over vehicle compatibility and consumer choice.
Description:
- Ethanol: alcohol-based biofuel, derived from sugarcane, maize, biomass.
- Blending petrol with ethanol → reduces carbon emissions, oil imports, & boosts energy self-reliance.
- Ethanol Blended Petrol (EBP) Programme: Launched 2003;
- E10 achieved in 2022
- E20 achieved in 2025
Benefits of E20 Programme:
- Environmental: Cuts COâ‚‚ emissions significantly.
- Economic: Saves ₹50,000+ crore annually in crude oil imports
- Farmers’ income: Increases demand for sugarcane & other feedstock crops.
- Energy Security: Reduces dependency on imported fossil fuels.
Challenges & Concerns:
- Fuel Efficiency:
- Ethanol has 30% less energy than petrol → mileage drops.
- Govt view: only 1–2% loss for newer vehicles, 3–6% for older ones (with tuning).
- Experts: 6–7% real-world loss possible.
- Vehicle Compatibility Issues:
- Ethanol is hygroscopic (absorbs moisture) → leads to:
- Corrosion of metal components (fuel tank, injectors).
- Degradation of rubber/plastic (gaskets, seals).
- Altered air-fuel ratio, affecting performance.
- Older vehicles (pre-2023) face higher risks.
- Ethanol is hygroscopic (absorbs moisture) → leads to:
- Maintenance Costs:
- More wear & tear → higher repair bills.
- Hero MotoCorp & TVS acknowledge need for re-engineered components.
Industry & Govt Response:
- Auto makers producing E20-compatible models.
- Service advisories issued for older vehicles.
- Govt pushing for calibrated ECUs to minimise damage.
Future Outlook:
- Higher blends (E30, E40) under discussion.
- Will require:
- Dual fuel dispensing infrastructure.
- Retrofitting/phase-out of older vehicles.
- Regulatory clarity & consumer awareness.

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