No Decision Yet on Blending Beyond E20, Government Tells Rajya Sabha

Responding to a written question in the Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi stated unequivocally that the government has taken no decision to raise ethanol blending in petrol above the current 20% cap. Any proposal to push the ratio higher, he said, would be considered only after detailed scientific and technical studies alongside extensive consultations involving automobile manufacturers, oil marketing companies, research institutions, and other relevant stakeholders.

The clarification is significant because it sets a clear process requirement — not just a political signal — before E20 can be surpassed. It also draws a firm line under weeks of media speculation that India was eyeing an accelerated move to higher blend levels following the programme's early completion of its 20% target.

The government used the Rajya Sabha response to highlight the scale of what has been achieved. Average ethanol blending in petrol has climbed from a mere 1.53% in 2013-14 to 20% in the 2025-26 ethanol supply year — a milestone reached five years ahead of the original schedule after more than two decades of phased implementation.

The economic and environmental scorecard, according to the minister, is equally striking:

• ₹1.97 lakh crore saved in foreign exchange through reduced crude oil imports
• 316 lakh tonnes of crude oil displaced
• 952 lakh tonnes of carbon dioxide emissions prevented
• ₹1.66 lakh crore in additional income delivered to farmers since 2014-15

These figures collectively frame the EBP Programme as one of India's more consequential agri-energy policy interventions of the past decade.

Addressing the most contested public concern around E20, Gopi told the Rajya Sabha that the government has not received any widespread or substantiated complaints from vehicle manufacturers, automobile associations, or consumer groups regarding engine failure, fuel pump damage, corrosion, or water contamination attributable to E20 fuel.

Scientific assessments of concerns circulating in media and on social media platforms have not turned up evidence of large-scale technical problems, he added. The minister pointed out that more than 20 crore two-wheelers and over 3 crore petrol cars — including many manufactured before E20 certification — have been running on E15-plus and E19-E20 blends for several years without verified widespread engine failures. Service data from leading automakers did not establish fuel-related damage either.

Gopi did acknowledge that older vehicles designed for E10 fuel could see a marginal fuel efficiency reduction of around 3–5%, while noting that E20 offers a higher octane rating and cleaner combustion. Manufacturers continue to honour warranties for E20-compliant vehicles, he confirmed.

On food security concerns, Gopi clarified that ethanol production draws only on surplus foodgrains after meeting Public Distribution System requirements, National Food Security Act obligations, and buffer stock norms.

The feedstock mix, however, is changing fast. Rice diverted for ethanol rose to 39.28 lakh tonnes in 2025-26 through 30 June, up from 31.11 lakh tonnes in 2024-25. Maize diversion, at 67.87 lakh tonnes in the same period, was sharply lower than the 131.18 lakh tonnes recorded in 2024-25 — yet maize still accounted for nearly 37% of ethanol production in 2025-26, compared with virtually zero contribution in 2021-22.

This structural pivot matters for grain markets: the rapid rise of maize as an ethanol feedstock has created a new, large demand centre for the crop within India's domestic supply chain. Distilleries are required to operate as zero-liquid-discharge units to ensure sustainable water use.

Gopi also shut down suggestions that the government might offer non-blended or lower-blend petrol at select retail outlets for owners of older or non-compatible vehicles. Any such parallel distribution arrangement, he said, would drive up costs and directly undermine the environmental and farmer-income objectives embedded in the National Policy on Biofuels.

The position leaves little room for compromise on retail infrastructure, signalling that the government regards a uniform blended fuel supply as non-negotiable for the programme's commercial and policy logic. For agri-businesses and distilleries supplying the blending pipeline, this rules out any demand fragmentation that might otherwise have complicated procurement and logistics planning.