Op-ed: E20 petrol's mileage loss may have cost consumers ₹88,234 crore in three years
Blending ethanol was meant to save money, crude and carbon. What if lower mileage eats into all three?
Published 17 September 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
An opinion article in The Hindu, 'What lies beyond India's E20 push', questions the costs of India's move to E20 petrol. E20 is a blend of 80% petrol and 20% anhydrous ethanol (ethanol with almost all water removed). Public sector oil marketing companies began selling it on 6 February 2023. The policy basis is the National Policy on Biofuels, 2018: on 18 May 2022 the Union Cabinet amended it to advance the target of 20% ethanol blending in petrol to the Ethanol Supply Year (ESY) 2025-26 from 2030. The same amendments allowed more feedstocks for biofuel production, encouraged production in Special Economic Zones and Export Oriented Units, and permitted exports of biofuels in specific cases.
The article's central claim is about mileage. It cites joint testing by the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM) and Indian Oil Corporation that found a fall in fuel economy of 2% to 6%, depending on the category and age of the vehicle, with older vehicles hit harder. Because vehicles burn more fuel to cover the same distance, the article estimates that consumers spent an extra ₹88,234 crore over three years. It also argues that if the mileage loss is between 4% and 6%, emissions per kilometre could rise even though ethanol burns more cleanly.
The article adds an agricultural cost. Diverting sugarcane and maize to make ethanol, it says, contributed to curbs on sugar exports and turned India from a maize exporter into a net importer, reducing export earnings and raising food security concerns. The government's case for blending rests on lower crude oil imports and foreign exchange savings, lower carbon emissions, and better incomes for farmers who supply feedstock. The article recommends giving consumers a choice between E10 and E20 fuel and investing in public transport. The debate is an example of the 'food versus fuel' trade-off and of how the design of a green policy decides who bears its costs.
Prelims facts
- E20 is 80% petrol and 20% anhydrous ethanol; public sector oil marketing companies began selling it on 6 February 2023.
- On 18 May 2022 the Cabinet amended the National Policy on Biofuels, 2018 to advance the 20% blending target to ESY 2025-26 from 2030.
- An op-ed citing ARAI, SIAM and IOCL testing says E20 lowers fuel economy by 2% to 6%, and estimates an extra consumer spend of ₹88,234 crore over three years.
- The op-ed argues emissions per kilometre could rise if the mileage loss is 4% to 6%, and links feedstock diversion to curbs on sugar exports and maize imports.
- It recommends a consumer choice between E10 and E20 and more investment in public transport.
Quick recall
- What is E20 petrol?
- 80% petrol blended with 20% anhydrous ethanol
- When did public sector oil companies begin selling E20?
- 6 February 2023
- When did the Cabinet advance the 20% blending target?
- 18 May 2022, to ESY 2025-26 from 2030
- Which policy carries India's ethanol blending target?
- The National Policy on Biofuels, 2018
- What is anhydrous ethanol?
- Ethanol with almost all its water removed, suitable for blending with petrol
- Fuel economy loss with E20 cited by the op-ed?
- 2% to 6%, from ARAI, SIAM and IOCL testing
- Extra consumer spending estimated by the op-ed?
- ₹88,234 crore over three years
- What does the op-ed recommend?
- A consumer choice between E10 and E20, and more investment in public transport
Prelims practice question
With reference to India's ethanol blending programme, consider the following statements:
1. E20 petrol contains 20% ethanol and 80% petrol.
2. The 2022 amendment to the National Policy on Biofuels, 2018 advanced the 20% blending target to ESY 2025-26 from 2030.
3. The 2022 amendment banned the export of biofuels in all cases.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Show answer
Answer: (a) 1 and 2 only. Statement 1 is correct: E20 is 20% anhydrous ethanol and 80% petrol. Statement 2 is correct: the Cabinet approved this on 18 May 2022. Statement 3 is incorrect: the amendment granted permission for export of biofuels in specific cases.
Use this in UPSC Mains: previous-year questions
Recurring theme: Energy security and clean fuels: biofuels, ethanol blending and their trade-offs
- How to use this
Ethanol blending shows how a renewable, biomass-based fuel can cut crude imports, while the E20 debate shows why non-food feedstocks matter for a sustainable path.
- The Cabinet amended the National Policy on Biofuels, 2018 on 18 May 2022 to advance 20% ethanol blending to ESY 2025-26 from 2030, and widened the feedstocks allowed for biofuel production.
- E20 (80% petrol, 20% anhydrous ethanol) went on sale on 6 February 2023; the government's case is lower crude imports, foreign exchange savings, lower carbon emissions and farm incomes.
- Because an op-ed links sugarcane and maize diversion to sugar export curbs and maize imports, argue for second-generation ethanol from crop residue and surplus biomass.
- How to use this
E20 is a current energy security measure whose costs, as an op-ed argues, show the tension between import substitution, consumer welfare, food security and sustainability.
- Government rationale for E20: lower crude oil imports and foreign exchange savings, lower carbon emissions and better incomes for farmers supplying feedstock.
- An op-ed citing ARAI, SIAM and IOCL testing puts E20's fuel economy loss at 2% to 6% and estimates consumers spent an extra ₹88,234 crore over three years.
- Measures suggested: a consumer choice between E10 and E20, pricing E20 for its lower energy content, second-generation feedstocks, and investment in public transport to cut fuel demand.
Mains practice question
India's ethanol blending programme aims at energy security and lower emissions, but critics point to mileage losses and diversion of food crops. Critically evaluate the E20 programme and suggest how its design can be improved. (250 words)
Model answer
India began selling E20 petrol (20% ethanol, 80% petrol) on 6 February 2023 after the National Policy on Biofuels, 2018 was amended in May 2022 to advance the 20% target to ESY 2025-26 from 2030.
Objectives and gains
- Lower crude oil imports and foreign exchange savings.
- Lower carbon emissions from a partly renewable fuel.
- Additional income for farmers supplying sugarcane and grain.
- Growth of distillery capacity and rural investment.
Concerns raised
- Mileage: an op-ed citing ARAI, SIAM and IOCL testing puts the fuel economy loss at 2% to 6%, higher for older vehicles.
- Consumer cost: it estimates an extra ₹88,234 crore spent over three years.
- Emissions: it argues that a 4% to 6% mileage loss could raise emissions per kilometre.
- Food versus fuel: diversion of sugarcane and maize linked to curbs on sugar exports and to maize imports.
- Water: sugarcane is a water-intensive crop.
Improving the design
- Offer consumers a choice between E10 and E20, with clear labelling.
- Price E20 to reflect its lower energy content.
- Shift feedstock towards second-generation ethanol from crop residue and surplus biomass, as the amended policy's wider feedstock list allows.
- Encourage flex-fuel and E20-compatible engines for new vehicles.
- Publish independent life-cycle emission and mileage studies.
- Invest in public transport to cut fuel demand itself.
Conclusion
Ethanol blending can serve energy security, but only a design that protects consumers, food supplies and water will make it sustainable.
The basics
Why this matters
Ethanol blending is one of India's biggest energy policies. It touches energy security, climate goals, farm incomes and food supply at once. An op-ed now argues that E20 petrol has cost consumers through lower mileage. To weigh the argument you need to know what blending is, why ethanol changes mileage, and where the ethanol comes from.
What E20 is
E20 is petrol mixed with 20% anhydrous ethanol, meaning ethanol with almost all its water removed, since water does not mix well with petrol. Ethanol is an alcohol made by fermenting sugars from sugarcane, grains or plant material.
- 1Petrol (80%)Fossil fuel refined from crude oil, most of it imported
- 2Anhydrous ethanol (20%)Alcohol from sugarcane, grains or biomass, with water removed
- 3FeedstockCrops or residues that are fermented to make the ethanol
The policy path
The target comes from the National Policy on Biofuels, 2018. In May 2022 the Cabinet brought the 20% target forward by about five years and widened the list of allowed feedstocks.
- 2018National Policy on Biofuels, 2018 adopted
- 18 May 2022Cabinet advances the 20% target to ESY 2025-26 from 2030
- 6 February 2023Public sector oil companies begin selling E20
- ESY 2025-26Target year for 20% blending
- 17 September 2026Op-ed questions E20's cost to consumers
Why mileage falls
A litre of ethanol carries less energy than a litre of petrol. So a vehicle running on E20 needs slightly more fuel for the same distance, as explained in Ethanol blending and fuel economy. How much more depends on the engine and its age.
- Cuts crude oil imports and saves foreign exchange
- Lowers carbon emissions from fuel
- Adds income for farmers who supply feedstock
- Fuel economy falls by 2% to 6%
- Consumers spent an estimated ₹88,234 crore more over three years
- Emissions per km may rise if mileage falls 4% to 6%
- Diverts sugarcane and maize from food and exports
Where the ethanol comes from
Most ethanol today is First- and second-generation ethanol of the first kind, made from sugarcane and grains. That raises the Food versus fuel question. Second-generation ethanol from crop residues avoids it but is costlier to make.
Go deeper
In one line: An op-ed in The Hindu argues that E20 petrol's 2% to 6% loss in mileage may have cost consumers about ₹88,234 crore over three years and diverted food crops, and asks for consumer choice between E10 and E20.
Why it matters for UPSC
Biofuels link GS3 energy, environment and agriculture. Prelims asks about the National Policy on Biofuels and feedstocks; Mains asks about energy security and trade-offs in green policy.
The core idea
The National Policy on Biofuels, 2018 set a 20% blending target, advanced to ESY 2025-26 in 2022. Ethanol has less energy per litre than petrol, so blending reduces mileage, which is the issue in Ethanol blending and fuel economy. Most ethanol is made from sugarcane and grains, raising the Food versus fuel concern; First- and second-generation ethanol explains the alternative from crop residue.
Numbers and dates to remember
- E20: 80% petrol, 20% anhydrous ethanol.
- 6 February 2023: sale of E20 begins through public sector oil marketing companies.
- 18 May 2022: Cabinet advances the 20% target to ESY 2025-26 from 2030.
- Op-ed figures: 2% to 6% mileage loss (ARAI, SIAM and IOCL testing); ₹88,234 crore extra spend over three years; emissions may rise at a 4% to 6% mileage loss.
Where to go next
- National Policy on Biofuels, 2018: the policy behind the target.
- Ethanol blending and fuel economy: why mileage falls.
- First- and second-generation ethanol: crops versus residues.
- Food versus fuel: the farm-side trade-off.
Go deeper: is E20 the right design?
The case for the programme. Every litre of ethanol replaces some imported crude, which saves foreign exchange and improves energy security. Ethanol is produced from crops that absorb carbon as they grow, so its fuel-cycle emissions can be lower. Distilleries also create a new market for sugarcane and grain farmers. The National Policy on Biofuels, 2018, amended in 2022, widened feedstocks and advanced the target to push these gains faster.
The op-ed's objections. First, cost to consumers: the loss in fuel economy, explained in Ethanol blending and fuel economy, means more litres bought for the same distance, which the article values at ₹88,234 crore over three years. Second, emissions: it argues that beyond a 4% mileage loss the extra fuel burnt could outweigh ethanol's cleaner combustion. Third, agriculture: it links feedstock diversion to curbs on sugar exports and to India becoming a net maize importer, the Food versus fuel problem.
How to read the numbers. The ₹88,234 crore figure is the author's estimate, and the emissions point depends on assumptions about how ethanol is produced. The testing range of 2% to 6% also means that newer engines designed for E20 lose less than older ones.
Design choices. The article suggests letting consumers choose between E10 and E20 and investing in public transport. Other options often discussed include pricing E20 to reflect its energy content, faster adoption of First- and second-generation ethanol from crop residue, and E20-compatible or flex-fuel engines in new vehicles.
National Policy on Biofuels, 2018
The policy that set and then advanced the 20% target.
In one line: The National Policy on Biofuels, 2018 is the Centre's framework for producing and using biofuels such as ethanol and biodiesel, and it carries India's blending targets.
The 2022 amendments
On 18 May 2022 the Union Cabinet approved amendments to the policy. They:
- advanced the target of 20% ethanol blending in petrol to ESY 2025-26 from 2030;
- allowed more feedstocks for biofuel production;
- promoted biofuel production under Make in India by units in Special Economic Zones and Export Oriented Units;
- added new members to the National Biofuel Coordination Committee;
- permitted export of biofuels in specific cases.
The government linked these changes to the goal of energy independence by 2047.
Why it is in the news
E20 petrol is the result of this policy. An op-ed now questions its cost to consumers.
Where to go next
Ethanol blending and fuel economy
Why a blended fuel gives fewer kilometres per litre.
In one line: Ethanol contains less energy per litre than petrol, so a blend with more ethanol gives a vehicle somewhat fewer kilometres per litre.
The science
Fuel economy depends on the energy a litre of fuel releases when burnt. Ethanol already contains oxygen, so it releases less energy per litre than petrol. It also has a higher octane rating, which engines designed or tuned for it can use to recover some efficiency. Older engines built for petrol or low blends gain less of this benefit.
Why it is in the news
An op-ed cites joint testing by ARAI, SIAM and Indian Oil Corporation showing a 2% to 6% fall in fuel economy with E20, depending on vehicle category and age. It estimates the extra consumer spending at ₹88,234 crore over three years and argues that emissions per kilometre could rise at the upper end of that range.
Where to go next
First- and second-generation ethanol
Crops versus residues as the source of ethanol.
In one line: First-generation ethanol is made from food crops such as sugarcane and grains, while second-generation ethanol is made from non-food plant material such as crop residues.
How they differ
First-generation ethanol uses sugars or starch that are easy to ferment, so it is cheaper and already produced at scale. But it competes with food and animal feed for the same crops, and sugarcane needs a lot of water. Second-generation ethanol breaks down tough plant fibre such as straw and stalks. It avoids competition with food and can reduce crop-residue burning, but the technology is costlier.
Why it is in the news
An op-ed on E20 recommends moving away from food crops. The 2022 amendments to the National Policy on Biofuels allowed more feedstocks for biofuel production, which is the policy space for such a shift.
Where to go next
Food versus fuel
When crops for fuel compete with crops for food and exports.
In one line: The food versus fuel debate asks whether using crops to make fuel raises food prices, reduces food availability or cuts exports.
The trade-off
When sugarcane, maize or rice go to distilleries, less is available for food, animal feed or export. Farmers may gain from a new buyer, but consumers and livestock sectors can face higher prices. Water-intensive crops such as sugarcane also add pressure on groundwater.
Why it is in the news
An op-ed on E20 argues that diverting sugarcane and maize for ethanol contributed to curbs on sugar exports and turned India from a maize exporter into a net importer, reducing export earnings. Supporters of blending reply that farm incomes and energy security gains justify the shift.
Where to go next
Take the 17 September 2026 quiz: 30 Prelims-style questions with answers