Explainer-Why E20 fuel is causing angst in India’s auto market
New Delhi (Reuters) -Itan Prime Minister Narendra Modi government, called the E20 E20, has launched the ETHANOL BREAD FUEL, causing panic and confusion in the world’s third largest automobile market.
Here are the facts about the details of the E20 and the effect:
How was the E20 released? How does it help?
The E20 is mainly mixed with 20% ethanol, a alcohol produced from grains such as sugar cane and corn and rice. It was introduced in a few pumps in April 2023 and has been released in India since April 2025, and 10% of the E10, which was designed for the use of most cars, changed the fuel of E10.
In recent weeks, old fuel mixtures such as E10 and E5 stopped being present and consumers have left the option other than buying the E20.
India said E20 has reduced oil imports and saved $ 5 billion this year and added almost $ 4.6 billion to its farmer’s revenues.
Fuel is also considered less pollutants.
Why are the Indians angry?
Brazil and the United States are among the other major markets that push ethanol blended fuels. However, these countries – unlike India – offer more than one fuel mixture to its pumps and offers a choice to consumers.
Indian drivers are worried about how the country’s 90,000 pumps can affect the performance of another fuel option and E20’s old cars and motorcycles.
Many automobile guides not only pointing to the use of the E5 or E10 permissible fuels – in addition to confusion – not car manufacturers, but the automobile industry group, guarantees and insurance demands will be honored.
What does industry and government say?
The government says fears are unfounded and the only way to E20. Old vehicles may need to change some rubber pieces and gaskets, but the government says it is a “simple process.”
The automobile industry greatly supported the government’s line.
Last week, according to laboratory tests, fuel efficiency fell 2-4% with the use of E20 – it was called a higher, but safe fuel in real world conditions and old vintages.
This makes a harsh change from the long -standing position of the industry over the E20.
In 2020, the Indian Automobile Manufacturers Association added that the government should provide E10 with the E20 to ensure the “safe work” of the vehicles, and that the changing parts in the old vehicles are “mammoth task”.
Who is helping?
Distilities such as India’s sugar factories and Bajaj Hindusthan Şeker, Balrampur Chini Mills and Shree Renuka candies gain higher sugar demand and earn ethanol manufacturers such as Praj Industries and Cian Agro.
Oil marketing companies, including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corp, obtain less raw imports.
(Reporting by Aditi Shah and Aditya Kalra; Editing by Barbara Lewis)
