India to retain E20 despite 3–5% mileage hit for some older vehicles
The government told Parliament that E20 petrol may reduce fuel economy by 3–5% in certain older E10-designed vehicles, but said there is no evidence of widespread engine damage. It ruled out a return to E0 or E10, citing the cost and complexity of parallel supply chains across 1 lakh-plus fuel outlets.
The government told Parliament that E20 petrol can lower mileage by 3-5% in some older vehicles but has not caused widespread engine damage. It will retain E20, citing operational and logistics costs of parallel fuel supply chains across retail outlets.
Why this matters
The decision follows the government's report that E20 added ₹1.66 lakh crore to farmer income with no verified widespread damage complaints, extending its policy support for domestic supply chains alongside the ₹62,500-crore mobile manufacturing scheme.
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