India Holds E20 Ethanol Blend at 20% – No Immediate Increase
The Minister of State for Petroleum and Natural Gas, Suresh Gopi told the Rajya Sabha on 20 July 2026 that the government will not raise the ethanol‑petrol blend beyond the present E20 level. Any future hike will depend on detailed scientific studies and consultations with industry stakeholders.
Key Developments
- No decision taken to increase ethanol blending beyond 20% at present.
- Further rise will follow "detailed scientific and technical studies" and dialogue with automobile makers, oil marketing companies and research institutes.
- Government reports no widespread complaints from vehicle manufacturers or consumer groups about engine or fuel‑pump issues linked to E20.
- Milestone achieved: India met the 20% blending target five years early, moving from ~1.53% in 2013‑14 to 20% in the 2025‑26 supply year.
Important Facts
- Since 2014‑15, the programme has saved over ₹1.97 trillion in foreign‑exchange, displaced about 316 lakh tonnes of crude oil, avoided roughly 952 lakh tonnes of CO₂, and generated ₹1.66 lakh crore extra income for farmers.
- More than 20 crore two‑wheelers and 3 crore petrol cars have run on E15‑plus or E20 fuels for 2‑3½ years without verified large‑scale engine failures.
- Service data from a leading four‑wheeler maker (covering 2.84 crore vehicles in 2025‑26) showed no damage linked to E20; a two‑wheeler maker reported similar results.
- Older vehicles designed for E10 may see a marginal mileage loss of 3‑5%, but warranties remain honoured.
- Food security is unaffected: only surplus grains after meeting Public Distribution System (PDS), National Food Security Act (NFSA) and buffer‑stock needs are used for ethanol.
- Rice diverted to ethanol rose to 39.28 lakh tonnes in 2025‑26, while maize diversion fell to 67.87 lakh tonnes, reflecting a shift to maize (now ~37% of feedstock).
- Ethanol plants use 3‑