Is Nitin Gadkari damaging your car?

India’s push for ethanol-blended petrol, particularly the E20 variant (20% ethanol and 80% petrol), has become a focal point of national debate. Launched aggressively in the early 2020s by the Ministry of Petroleum and Natural Gas — we’ve been hearing how excited Minister Nitin Gadkari has been about the idea since he was an opposition leader — this initiative aims to cut crude oil imports, reduce greenhouse gas emissions, support farmer incomes through increased demand for sugarcane and grain-based ethanol, and enhance energy independence.

The government achieved its 20% blending target nationwide ahead of the 2025 deadline, with discussions now focusing on even higher levels, such as E27. Proponents highlight substantial savings — estimated at around $10 billion annually in foreign exchange — alongside environmental benefits and economic benefits for rural areas.

Yet, this programme hasn’t been without its critics. Consumers, automakers, environmentalists and experts have voiced strong concerns over vehicle performance, rising costs, sustainability issues and likely industry favouritism. The ethanol blending controversy underscores the tension between policy ambitions and on-ground realities as India transitions to cleaner fuels amid global climate pressures.

Reduced fuel efficiency, consumer costs: Hidden burden?

One of the most frequent complaints centres on the impact on fuel efficiency. Ethanol, while renewable, has about 30% lower energy density than traditional petrol. In E20 blends, this translates to a 3-5% drop in mileage, forcing drivers to refuel more frequently for the same distance. Experts estimate this inefficiency costs Indian consumers an additional ₹16,000-17,000 crore yearly, effectively increasing fuel expenses without compensatory price cuts for blended petrol.

The government counters these claims by harping on E20’s advantages, such as improved acceleration, smoother rides and lower tailpipe emissions. It argues that the long-term benefits of national savings on oil imports far outweigh individual inconveniences. However, on social media and automotive forums, users label it as “adulteration” or “daylight robbery”, pointing out that blended fuel is sold at the same price as pure petrol despite its lower efficacy [Well, this has been the Narendra Modi government’s enduring and intriguing policy, where it never let the benefit of cost reduction reach the end user of petroleum, always spending the money saved on infrastructure or narrowing the fiscal deficit].

Companies like Shell offer unblended premium petrol at higher prices, but this option remains inaccessible for many, fuelling (pun intended) demands for more affordable pure fuel alternatives.

For everyday commuters in bustling cities like Delhi-NCR or Mumbai, where traffic congestion already amplifies fuel consumption, this mileage hit can add up disturbingly. Imagine a daily 50 km commute: Over a year, the extra fuel needed could cost an average sedan owner hundreds of rupees more. This aspect of the ethanol blending controversy highlights how policy-driven changes can inadvertently burden the middle class, prompting calls for subsidies or transparent pricing adjustments.

Engine compatibility, probable damage: Risks to India’s vehicle fleet

Another major flashpoint is the compatibility of E20 with existing vehicles. Ethanol’s hygroscopic nature — it absorbs water — and its corrosive properties can degrade rubber seals, fuel lines and metal components in engines not designed for high blends. With over 75% of India’s vehicle fleet predating 2023, when E20-compatible models became standard, reports of breakdowns, power loss and increased maintenance have surged.

Automakers like Renault assure that E10-compliant cars can handle E20 safely, but independent studies from organisations like SAE International warn of material degradation and performance dips. The government dismisses these as exaggerated fears, comparing India’s programme to Brazil’s successful E27 implementation with flex-fuel vehicles. It deliberately ignores that Brazil’s infrastructure supports such blends better and India’s ageing fleet lacks similar adaptations.

Real-world anecdotes abound: drivers report that insurers deny claims, citing “negligent use” of blended fuel, while some petrol stations downplay the blend to avoid customer backlash. This has led to broader concerns about forced vehicle scrappage, often pressuring owners to upgrade prematurely without the availability of government incentives. In motorcycle-heavy rural areas, where two-wheelers are the dominant mode of transportation, these risks could disrupt livelihoods that depend on reliable transportation.

Environmental sustainability: Green promise or hidden costs?

On the surface, ethanol blending appears environmentally sound, promising reduced carbon dioxide emissions and less reliance on fossil fuels. However, a deeper look reveals complexities. Producing ethanol from sugarcane demands enormous water resources — up to 2,500 litres per litre of ethanol — in a nation grappling with water scarcity. This exacerbates shortages in states such as Uttar Pradesh and Maharashtra, key sugarcane-producing hubs.

Moreover, diverting agricultural land and crops for fuel production sparks “food vs fuel” debates, likely inflating food prices amid global supply chain issues. Lifecycle assessments question the net emission reductions, taking into account energy-intensive farming and distillation processes. Critics advocate alternatives such as expanded public transportation, electric vehicles (EVs), or improved urban planning, arguing that these could achieve greater fuel savings without the trade-offs.

Supporters of blending argue that biofuels serve as a transitional step toward sustainability, particularly as India aims to achieve net-zero emissions by 2070. Yet, the controversy highlights the need for comprehensive environmental policies that address the impacts on water, land, and biodiversity.

Cronyism? Transparency gaps certainly

Adding fuel to the fire are accusations of favouritism towards sugar mill owners and distilleries, some allegedly connected to politicians like the union minister mentioned in the beginning, whose family ties to the sugar sector have drawn scrutiny for more than a decade, when the then-new kid on the political block, Arvind Kejriwal, questioned the then-BJP president’s Poorti Group (and then apologised for defamation). Opponents view the programme as a bailout for overproducing sugar industries rather than a pure environmental effort. 

Unlike in countries that offer choices, the lack of pure petrol options and minimal stakeholder consultation amplify these concerns. Opposition parties and online communities are demanding greater transparency, independent audits, and opt-out mechanisms. The government insists the initiative is farmer-centric and inter-ministerial, but perceived media bias has only heightened public scepticism. 

Navigating future: Balancing ambition, concerns

The ethanol blending controversy in India reflects broader challenges in energy transitions: Weighing national goals against individual impacts. Public outrage continues to grow, with calls for independent testing, consumer protections and flexible policies. As the government issues clarifications, the path forward may involve adjusting prices, offering improved vehicle incentives, and implementing sustainable sourcing practices. 

For vehicle owners worried about E20, consulting manufacturer guidelines or automotive experts is crucial. Resolving this debate could set a precedent for India’s green energy future, ensuring benefits are equitably shared.