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E20 fuel may lower mileage, but it's safe to use
Lobby group representing Indian automakers assures that it is safe to use

E20 fuel may lower mileage, but it's safe to use

Aug 31, 2025
06:25 pm

What's the story

India's introduction of 20% ethanol-blended fuel, known as E20, could reduce vehicle mileage by 2%-4%. However, the Society of Indian Automobile Manufacturers (SIAM) has assured that it is safe to use. The announcement comes amid rising concerns among motorists over the impact of this new fuel on vehicle performance and durability.

Clean energy initiative

Concerns over vehicle performance and durability

The introduction of E20 fuel is part of Prime Minister Narendra Modi's clean energy push. The government had set a target for 2025 to achieve 20% ethanol blending in fuel. However, the recent transition to E20 as the only option at nearly all petrol pumps has raised concerns among drivers over its effect on vehicle performance and longevity, especially for older models.

Safety assurance

SIAM assures safety, honors warranty claims

P.K. Banerjee, Executive Director at SIAM, assured that using E20 fuel in older vehicles may reduce mileage but doesn't pose a safety risk. He emphasized that millions of vehicles have been running on E20 for quite some time without any reports of breakdowns or engine failures. If any issues do arise, companies will fully honor warranty and insurance claims.

Mileage impact

Scientific studies on mileage drop

Banerjee dismissed claims of a 50% drop in fuel efficiency as baseless and misinformed. He cited scientific studies conducted in controlled environments that show a 2%-4% decrease, putting a number to the reduction for the first time. However, C.V. Raman, an executive committee member at Maruti Suzuki, India's largest carmaker, said real-world conditions could lead to greater mileage drops due to various factors.

Fuel transition

Transition to E20 fuel

India has been gradually introducing E20 fuel since 2023. Older blends such as E5 and E10, which are more compatible with older vehicles, were also available. However, these older fuel mixes have now been removed from nearly all of the country's 90,000 petrol pumps. This leaves drivers with just one option, a decision that is unlikely to change anytime soon.