E20 Petrol Trouble: What Govt Should Do To Prevent Engine Damage

Ethanol-blended petrol has been in India for two decades, starting with a five per cent mix. But the sudden nationwide switch to E20 this year has caused confusion among motorists, with concerns spreading online and in workshops. The government insists there is no cause for alarm, but the reality is more complex.
While most vehicles sold since April 2023 are designed for 20 per cent ethanol, a large majority of cars and two-wheelers on the road are older models. Owners of these vehicles now worry about possible engine damage from a higher alcohol content than their vehicles were built for.
Ethanol attracts water, meaning E20 absorbs moisture from the air more easily than regular petrol. In India’s humid climate, this increases the risk of phase separation in the fuel tank. Water can settle at the bottom, with alcohol above it and petrol on top. If the fuel pump draws from the water layer, it can cause rust, misfires and injector damage. Ethanol also has less energy than petrol, which means lower fuel efficiency unless the engine is recalibrated.
Countries like Brazil have managed these issues successfully, but only with a gradual rollout and by giving customers a choice of blends at the pump. Brazil’s widespread use of flex-fuel cars, with stronger fuel system components and adaptive engine software, makes the higher ethanol blends work. In India, however, even cars sold as recently as 2022 carry warnings in their manuals against using blends above E10. Some manufacturers have even stated that warranties will not cover damage caused by E20 in incompatible models.
The Ministry of Petroleum and Natural Gas has stated that there have been no scientifically confirmed cases of engine damage from E20. Their internal studies suggest a small drop in fuel economy in compatible cars and a slightly larger loss in older models, which they believe can be managed through regular servicing.
However, on the ground, drivers report noticeable drops in mileage and cold-start issues in winter, particularly in the north. Social media posts of trip computers showing significant fuel economy drops have added to the anxiety.
This gap between official assurances and consumer experience has created a trust problem. Without clear, visible measures, the perception of risk could undermine the ethanol blending programme’s goals.
The government can take several practical steps to address concerns and protect older vehicles:
1. Better labelling at fuel stations – Pumps often have small E20 stickers that are easy to miss. Brazil uses clear colour codes for different fuels. Adopting a similar system in India would reduce accidental misfuelling.
2. Blend disclosure on receipts – Digital and printed fuel bills should state the ethanol percentage. This would help vehicle owners track performance issues against fuel type.
3. Staggered rollout – Urban areas with newer vehicles could continue as E20-first zones, while rural pumps should stock both E10 and E20 for a transition period.
4. Independent durability testing – A neutral agency such as ARAI or IIT-Kanpur could conduct long-term tests on engines running E20, checking for wear, corrosion and injector clogging.
5. Scrappage and upgrade incentives – Offering rebates for owners who scrap older vehicles and buy E20-compatible models could help accelerate the transition.
6. Insurance and warranty alignment – If the government insists E20 is safe, insurers and manufacturers should adjust policies and warranties accordingly to cover fuel-related failures.
7. Price adjustments – In Brazil, ethanol is cheaper than petrol, which encourages voluntary adoption. Since ethanol in India has lower taxes, passing on this cost advantage could make E20 more appealing.
The ethanol blending programme aims to reduce emissions, lower oil import bills and support farmers by creating a market for biofuel feedstock. These are important goals. But engineering limitations and the reality of India’s ageing vehicle fleet cannot be ignored. A policy that works well on paper can fail in practice if consumer concerns are dismissed.