Government says ethanol blending helped contain petrol prices; older vehicles may lose mileage

The government says E20 has not caused verified widespread engine failures across 23 crore vehicles and helped avert a potential ₹125/litre petrol price. It acknowledges E10-designed legacy vehicles may see a 2–6% fuel-efficiency decline.

— Filed Thu, 30 Jul, 2026, 15:34 IST · Source Business Today · Latest · Updated

The government defended E20 petrol blending, citing no verified widespread engine failures across 23 crore vehicles. It said ethanol helped contain petrol prices during the West Asia crisis, though older E10-designed vehicles may see a 2-6% mileage decline.

Why this matters

The statement extends India’s blending push after a 1% SAF target for international flights in 2027 and warnings that pre-2016 BS-III vehicles may need rubber-part replacements for E20.

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