Why is India's E20 ethanol fuel facing a driver backlash?

• India achieved 20% ethanol blending in petrol ahead of schedule
• Drivers say E20 hurts mileage and damages older engines
• Government cites oil import savings and lower emissions

NEW DELHI - As India adds more biofuel ethanol to its petrol, consumers are filling social media with complaints that the fuel mix is hurting their engines and cutting into vehicle mileage ranges.

The government's fast-expanding ethanol programme aims to cut costly oil imports by blending petrol with ethanol, a biofuel made from crops like sugarcane or from organic waste that burns more cleanly than does pure petrol.

India last month hit its target of reaching a 20% ethanol mix in petrol, known as E20 petrol, five years ahead of schedule, making it available in several regions.

Consumers are saying the ethanol, a dry and corrosive fuel, is reducing fuel efficiency and the functioning of their engines - especially in older vehicles - making trips to fuelling stations and repair shops more frequent.

Why is ethanol biofuel so controversial?

Biofuels are central to India's plans to cut greenhouse gas emissions and oil import costs.

In just over 11 years, ethanol blending has risen more than 13 times, from 1.5% in 2014 to 20% in 2025, only three years after E10 fuel with 10% ethanol was made available nationwide, far faster than any other ethanol user nation.

The government says this saved 1.06 trillion Rupees ($12.09 billion) in crude oil imports and avoided 54.4 million tonnes of carbon emissions over the decade, equivalent to emissions from 12 million petrol cars a year.

But the gains come with trade-offs. India has ramped up ethanol production by diverting sugarcane, maize and rice production to make fuel, cutting grain availability for people and cattle and shifting land away from food crops.

Ethanol from food crops also can lose its green edge because farming and processing can create more emissions than the fuel saves.

Why are drivers pushing back?

Millions of cars and motorbikes sold before March 2023 in India, when E20-compatible vehicles officially went on sale, are only suited for previous fuel mixes with 5% or 10% ethanol. Drivers say being forced to use higher blends is unfair and that fuel stations offer little guidance.

They report lower mileage and engine problems such as rough idling, hard starts and clogged filters. Concerns grew last week after an Indian insurer said engine damage from using the wrong fuel would not be covered by insurance.

Citing the United States and Brazil, the world's top ethanol users, Indian petrol consumers have demanded an option to buy lower blends for older vehicles.

Which other countries have introduced biofuel?

Ethanol blending in petrol is common in Brazil, Thailand and the United States.  

Brazil gradually raised ethanol blends beginning in the 1970s, offering tax breaks and subsidies to build public support, and by 2003 it had cars that could run on any petrol-ethanol mix, according the International Energy Agency.

The Indian government's policy think tank Niti Aayog in 2021 advised a similar rollout, warning that consumer acceptance depended on pricing high ethanol blends lower than petrol. It also recommended tax breaks and retail price cuts to offset ethanol's lower energy content.

But these measures have not been applied, fuelling the backlash.

Two major motorbike makers and fuel retailer Shell India have warned that most vehicles built before 2023 may need fuel system changes to run on E20, with engine damage or warranty loss at the owner's risk.

What has the government said?

Following the E20 complaints online, India's Road Transport Minister challenged critics to prove widespread damage and blamed a petrol lobby for stoking fears.

This week, the Petroleum Ministry of India said the use of E20 fuel has no impact on insurance validity and that its internal studies found no major engine damage or performance loss.

It conceded that mileage may dip by 1% to 2% in newer cars and up to 6% in older ones, and that minor retrofitting during routine services can help avoid issues.

However, the government has not released detailed test data that consumers are demanding.

Nearly 66% of 36,000 vehicle owners surveyed across India  in early August opposed the national roll-out of E20 petrol, according to Indian polling firm Local Circles, with 44% demanding a withdrawal and 22% calling for more choices.

Experts say more selections at the pump and large-scale independent testing could ease mistrust.

($1 = 87.7070 Indian rupees)

(Reporting by Bhasker Tripathi; Editing by Jack Graham and Ellen Wulfhorst.)