Petroleum Ministry says E20 fuel helps better ride quality, refutes impact on insurance

In News:

The Ministry of Petroleum and Natural Gas (MoPNG) has clarified the benefits and addressed concerns related to E20 fuel — petrol blended with 20% ethanol — citing its role in improving ride quality, reducing emissions, enhancing farmers’ income, and strengthening India’s energy security.Key Points:

  • Performance Benefits:
    • E20 provides better acceleration and ride quality, especially in city driving conditions.
    • Reduces carbon emissions by ~30% compared to E10 fuel.
    • Higher octane rating (95 vs 91 for regular petrol) improves anti-knocking properties and engine performance.
  • Technical Concerns Addressed:
    • No adverse effects reported on drivability, vehicle start-up, or compatibility with metals/plastics.
    • Older vehicles may need inexpensive rubber/gasket replacement during servicing (once in vehicle’s lifetime).
    • No significant reduction in fuel efficiency; mileage influenced more by driving habits and maintenance.
  • Economic & Environmental Impact:
    • Saved ~₹1.44 lakh crore in foreign exchange (2014–15 to July 2025) by reducing crude imports.
    • Farmers’ income boosted — ~₹40,000 crore expected this year from ethanol supply.
    • Eliminated sugarcane arrears; improved maize cultivation viability.
    • Substituted ~245 lakh MT of crude oil; reduced ~735 lakh MT CO₂ emissions (equivalent to planting 30 crore trees).
  • Insurance Misconceptions:
    • MoPNG refuted claims that E20 damages are excluded from insurance coverage; such fears termed “baseless”.
  • Price Considerations:
    • Weighted average ethanol price higher than refined petrol due to rising cost of maize/C-heavy molasses.
    • Cost advantage not passed to consumers.

      Updated - August 12, 2025 08:35 pm IST | The Hindu