Mumbai, Feb 28 ( .) The central government has made the sale of 20 per cent ethanol-blended petrol, known as E20, mandatory across India, including Maharashtra and all other states and union Territories.
A notification to this effect was issued on February 17. As per the new norms, E20 petrol will have a minimum Research Octane Number (RON) of 95.
The primary objectives behind this move are to reduce crude oil imports, cut pollution levels, and boost farmers’ incomes by increasing demand for ethanol. The decision forms a key part of India’s clean energy and energy self-reliance strategy.
E20 petrol consists of 20 per cent ethanol and 80 per cent conventional petrol. Ethanol is produced from sugarcane, maize, and other grains. It is a renewable fuel produced domestically and burns cleaner than regular petrol. Ethanol naturally has an octane rating of 108, which helps reduce engine knocking. The RON 95 specification has been mandated to ensure engine safety and prevent damage.
The Ministry of Petroleum has directed oil marketing companies to supply E20 fuel in accordance with Bureau of Indian Standards (BIS) norms. The rollout will be implemented nationwide, although the Centre may grant limited exemptions in specific regions under special circumstances.
India had achieved its 10 per cent ethanol blending target ahead of schedule in June 2022.
The government has now advanced the 20 per cent blending target from 2030 to 2025-26. Since 2014-15, the use of ethanol has reportedly helped save around Rs 1.40 lakh crore in foreign exchange by reducing crude oil imports.
According to government estimates, E20 can reduce greenhouse gas emissions by 50–65 per cent compared to conventional fuels. Carbon emissions from vehicles are also expected to decline by nearly 30 per cent. Increased demand for sugarcane and maize is likely to benefit farmers by providing additional income opportunities.
Vehicles manufactured between 2023 and 2025 are designed to be compatible with E20 and are not expected to face major issues. However, older vehicles may experience a marginal drop in mileage of around 3–7 per cent, and there are concerns about long-term wear on rubber and plastic components. The government has dismissed these concerns, citing studies by NITI Aayog which state that E20 is safe and can improve engine efficiency.
The price of E20 petrol is expected to range between Rs 97 and Rs 106 per litre, making it comparable to or slightly cheaper than regular petrol. The policy is seen as a significant step toward reducing India’s dependence on imported crude oil while promoting cleaner fuel alternatives.
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