Amidst growing concerns over ethanol-blended petrol, which some argue leads to decreased mileage and increased maintenance costs, the Grain Ethanol Manufacturer’s Association (GEMA) has urged the government to expedite the rollout of higher ethanol blends beyond the current 20 percent and to accelerate the adoption of flex-fuel vehicles (FFVs).
In a statement issued on Tuesday, GEMA argued that these measures would align India’s biofuel strategy with international best practices, reduce reliance on fossil fuels, and support the country’s ambitious net-zero emissions target by 2070.
“Following the successful implementation of the Ethanol Blended Petrol (EBP) programme and the achievement of the 20 percent blending target set for 2025, India must aim for higher blends,” GEMA noted. The association cited Brazil’s model of increasing ethanol blending levels, which surfaces at E27 (27 percent ethanol and 73 percent petrol) and aims for a 55 percent replacement of petrol through FFVs.
GEMA emphasized that deploying flex-fuel engines capable of accommodating various ethanol-petrol blends is vital for the broad adoption of biofuels and for decarbonizing the transport sector.
However, GEMA acknowledged that increasing blending levels to 25-30 percent may not be immediately achievable. It proposed enhancing blending levels up to the “tolerance level” of existing vehicles, which could be “1 or 2 percent” above the current 20 percent.
“There is an immediate need to enhance the blending to the tolerance level of existing vehicles to support the grain ethanol industry,” said CK Jain, president of GEMA. He highlighted that the industry is prepared to collaborate with stakeholders to improve distribution infrastructure, but timely government policies and inter-ministerial coordination are essential to maintain progress.
Jain asserted that higher ethanol blends could significantly reduce carbon emissions compared to traditional petrol, aiding India in meeting its 2030 climate targets. In addition to environmental advantages, increased blending could decrease India’s oil import expenditures, improve energy security, and stimulate rural economic growth by creating demand for agricultural products such as sugarcane, maize, and surplus rice, he stated.
GEMA has called for more rapid collaboration between policymakers, including the Department of Science and Technology, and automobile manufacturers. By reducing emissions from conventional petrol vehicles, India could lower greenhouse gases, enhance air quality, and create green jobs within rural and industrial sectors, the association noted.
In response to criticism suggesting that E20 fuel leads to significant reductions in fuel efficiency, the government described such claims as misplaced. It clarified that vehicle mileage is influenced by multiple factors, including driving habits, maintenance, tire pressure, and air conditioning load, rather than just fuel type. The government added that while efficiency drops (if any) in E10 vehicles have been minimal, the question of fuel efficiency reduction does not arise for E20-compatible vehicles, which have been produced by some manufacturers since 2009.
Regarding assertions made in a NITI Aayog report that ethanol was cheaper than petrol, the government indicated that the situation has evolved since the study, conducted in 2020-21; the current weighted average price of ethanol is now higher than that of refined petrol.
While the government routinely raises the purchase prices of ethanol, grain-based ethanol producers are exempt from statutory obligations to pay fixed prices to farmers, unlike sugar-based units, which must purchase sugarcane at government-established rates.
Published on October 28, 2025.
