Overview
- The government told Parliament on Friday that when global crude reached about $135 a barrel, petrol in Delhi would have been about Rs 125 per litre without ethanol but instead sold for Rs 94.77 because 20% of fuel was domestically sourced ethanol, a saving of nearly Rs 30 a litre.
- Road Transport Minister Nitin Gadkari cited a joint ARAI–SIAM–IOCL study that found E20 can reduce fuel efficiency by about 2–6% depending on vehicle age and type and that some rubber parts in older BS‑III vehicles may need replacement.
- Officials said there is no verified evidence of engine failures linked to E20 and that more than 20 crore two‑wheelers and over 3 crore petrol cars have run on ethanol blends without confirmed damage.
- The Centre rejected claims that subsidised FCI grain for welfare schemes was diverted to ethanol, saying only surplus, damaged or unfit-for-human-consumption stocks and agricultural residues are used and noting payments to farmers and distillers and claimed foreign‑exchange and emissions savings.
- Critics and consumer groups continue to raise compatibility and cost concerns, and the government says the phased, validated rollout will remain under review as officials expand second‑generation ethanol capacity and monitor vehicle maintenance impacts.