Oil companies, automakers, and the Automobile Research Association of India (ARAI) maintain that there's no truth to the rumors regarding negative effects on vehicles due to the use of E20 fuel.

August 30, 2025

Thousands of passenger vehicles and two-wheelers have been part of scientific studies on E20 blended fuel, running for more than one lakh kilometers without issues. The studies, standardized and involving experimental validations, have confirmed the safety and benefits of E20 blended fuel.

Since 2014-15, ethanol blending has resulted in savings of over ₹1.40 lakh crore in foreign exchange. This shift towards homegrown fuel sources has seen ethanol increasingly being produced from surplus rice, maize, damaged food grains, and agricultural residues.

In 2025 alone, over ₹40,000 crore has been paid to farmers as a result of ethanol blending. This move not only supports the rural economy, as stated by Ravi of FIPI, but also strengthens India's energy security by reducing dependence on crude oil imports.

From April this year, the government has mandated all vehicles manufactured to be fully E20 compliant. This decision, according to Prashant K Banerjee, Executive Director of SIAM, has not led to any reports of vehicles breaking down due to the usage of E20 fuel, and there is no adverse effect on vehicle engines. SIAM has further assured that there will be "no change in warranty" of vehicles and will take ownership if any damage happens due to E20 blended fuel.

Vikram Gulati, Executive Vice-President at Toyota Kirloskar Motor, has stated that concerns on E20 affecting fuel efficiency drastically or impacting adversely vehicle engines are largely unfounded and not supported by scientific evidence or expert analysis.

Despite around 22 crore vehicles running on the Indian roads, which are not E20 compliant, there is no impact on them running on E20 blended fuel. The organizations Oil Marketing companies, Automakers, Automotive Research Association of India (ARAI), Society of Indian Automobile Manufacturers (SIAM), and Federation of Indian Petroleum Industry (FIPI) have collectively stated that there is no impact on vehicles due to ethanol blended fuel.

Looking ahead, future decisions beyond E20 (like E27 or E30) will involve a calibrated, phased approach, guided by extensive stakeholders consultations to ensure a smooth transition, as mentioned by PS Ravi, Advisor of FIPI.

The Ministry of Industry and Trade of Vietnam is also conducting studies on the effects of E20-blended gasoline on motor vehicles, confirming its safety for modern vehicles according to manufacturers' guarantees and manuals. International studies show that E10 reduces CO2 emissions and toxic pollutants, supporting the transition phases to higher ethanol blends in Vietnam's fuel market.

In conclusion, the adoption of E20 blended fuel in India is gaining momentum, with numerous benefits for the nation's energy security, rural economy, and environmental sustainability. The collaborative efforts of various organizations, including automakers, oil marketing companies, and research institutions, are ensuring a smooth and safe transition to this new fuel standard.

Oil companies, automakers, and the Automobile Research Association of India (ARAI) maintain that there's no truth to the rumors regarding negative effects on vehicles due to the use of E20 fuel.