The Union government has acknowledged that E20 petrol can reduce fuel efficiency by about 3% to 5% in some vehicles. At the same time, the Ministry of Petroleum and Natural Gas says mileage is only one factor and argues that the fuel has broader technical and policy benefits.
What the government has said
In a Ministry of Petroleum and Natural Gas FAQ, the government says E20 offers higher octane rating, better anti-knock performance, quicker combustion, improved pickup, smoother acceleration, and cleaner engine operation. It also states that lifecycle carbon emissions are reduced by roughly 40%.
The ministry further explains that E20 is not cheaper than ordinary petrol or lower-ethanol blends because the policy is designed to ensure adequate compensation for farmers. According to the release, this raises the production cost of ethanol-blended fuel when crude oil prices fall near $70 a barrel.
Why the issue matters
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