India to Cap Gasoline Ethanol Blend at 20% Amid Vehicle Performance Concerns

India will maintain its current 20% ethanol blend in gasoline and has no immediate plans for further increases, a government official stated Monday. The announcement from Junior Oil Minister Suresh Gopi in parliament provides clarity on the country's biofuel policy following a nationwide transition to the higher-blend fuel.

Government Responds to Motorist Concerns

The decision comes after the widespread rollout of E20 fuel—gasoline containing 20% ethanol—across India's approximately 90,000 petrol pumps late last year. According to the report, the switch in the world's third-largest car market prompted concerns from drivers regarding reduced fuel efficiency and overall vehicle performance.

While Minister Gopi stated that the government has not received official complaints about major issues like engine failure, corrosion, or fuel pump damage, he acknowledged a potential impact on efficiency. For vehicles originally designed for E10 fuel, using E20 can result in a 3% to 5% drop in fuel economy, the minister said.

No Reversal of E20 Policy

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Despite the pause on further increases, the government has no plans to revert to lower blends like E10 or offer pure gasoline. Gopi affirmed the administration's commitment to continue with what he described as a "superior fuel."

Any future consideration to raise the ethanol share beyond 20% would be contingent on comprehensive scientific and technical studies, Gopi told parliament. Such a move would also require extensive consultations with key stakeholders, including:

• Automakers
• Fuel retailers
• Ethanol feedstock suppliers

This policy stabilization provides a clear signal to the automotive and biofuel industries about near-term demand and technical requirements.