New Delhi: The Centre on Thursday strongly defended its ethanol blending programme, asserting that E20 petrol is safe for vehicles and that extensive testing has found no evidence of abnormal engine wear, corrosion or reduced vehicle life. The government also said the programme has enhanced India's energy security and helped protect consumers from global crude oil price volatility.

Replying to a question in the Lok Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said the Ethanol Blended Petrol (EBP) Programme was rolled out in phases after extensive consultations with NITI Aayog, automobile manufacturers, the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM), Oil Marketing Companies (OMCs) and other technical institutions.

No evidence of engine damage due to E20 fuel

Gopi said laboratory studies, field trials and real-world operating data have consistently shown that E20 fuel does not adversely affect vehicle performance when used under prescribed standards.

"These studies also established that legacy vehicles do not exhibit any significant variation in performance or abnormal wear and tear due to E20," he said, adding that laboratory studies, field validation and real-world operating experience had not established any widespread adverse impact on vehicle performance.

According to the government, E15 petrol has been widely used in India for more than three-and-a-half years, while E19-E20 fuel has been in circulation for over two-and-a-half years.

During this period, more than 20 crore two-wheelers and over three crore petrol cars have operated on ethanol-blended fuel "without any verified evidence of widespread engine failure or vehicle breakdown attributable to ethanol blending."

The minister said service records from automobile manufacturers also found no abnormal corrosion, excessive wear or reduction in vehicle life linked to E20 fuel, with manufacturers continuing to honour warranty obligations.

Citing industry data, Gopi said one leading automobile manufacturer serviced 2.84 crore vehicles during 2025-26, including 1.5 crore vehicles that were not originally certified as E20-compatible, and found no E20-related corrosion, abnormal wear or reduction in component life.

He added that a major two-wheeler manufacturer reported similar findings, while another original equipment manufacturer found no evidence of ethanol-induced corrosion after monitoring 1.4 crore E20-operated vehicles.

The government also said E20 petrol offers higher octane levels, improved anti-knock performance, smoother acceleration, better combustion and lower emissions, making engines cleaner and more efficient.

Centre says ethanol blending boosts energy security

Defending the economics of ethanol blending, the minister said public sector oil marketing companies procure ethanol under a pricing framework aimed at ensuring adequate supplies, supporting farmers and providing remunerative prices to producers rather than maximising profits.

The weighted average ex-mill price of ethanol for the 2025-26 supply year stood at ₹66.61 per litre, while the procurement cost, including GST and transportation, was about ₹71 per litre for Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd.

The government said petrol prices are determined by several factors, including global crude oil prices, exchange rates, freight costs, taxes, ethanol procurement and operational expenses.

According to the minister, public sector OMCs incurred an average under-recovery of around ₹11 per litre on petrol between March and June 2026, amounting to nearly ₹21,300 crore, as retail fuel prices remained below market levels.

Highlighting the strategic importance of ethanol blending, particularly during geopolitical disruptions, Gopi said,

"During the recent West Asian crisis, despite sharp increases in global crude prices, India was able to shield consumers through calibrated Government interventions, diversified sourcing and the increasing contribution of domestically produced biofuels," he said.

The government noted that while global crude oil prices have increased by around 70-80 per cent since February 2026, domestic fuel prices have risen by only 7-8 per cent.

It added that when the Indian crude basket touched nearly USD 135 per barrel, petrol could have been priced at around ₹125 per litre under market conditions. However, consumers in Delhi continued to pay ₹94.77 per litre, aided in part by ethanol procurement at approximately ₹70 per litre.

Calling ethanol blending a long-term strategic initiative, Gopi said it had helped reduce India's dependence on imported crude oil and improve resilience against international price fluctuations.

He described the programme as "a strategic investment in energy security, price stability, farmer welfare and foreign exchange savings, rather than a revenue-generating exercise for OMCs."