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E20 FuelA blend of 20% ethanol and 80% petrol. Ethanol is an alcohol-based biofuel made from sugarcane, maize, and other crops.
PurposeReduce dependence on imported crude oil, lower greenhouse gas emissions, and boost income for farmers.
Net Zero TargetSupports India's goal of achieving net zero emissions by 2070.
Environmental GainsEthanol emits far less CO₂ than petrol. From 2014-15 to July 2025, ethanol blending saved 736 lakh metric tonnes of CO₂ emissions (equivalent to planting 30 crore trees).
Economic SavingsSaved ₹1.44 lakh crore in foreign exchange, replaced 245 lakh metric tonnes of crude oil imports. At 20% blending, projected ₹43,000 crore annual forex savings.
Farmers' SupportAnnual payments to farmers expected to reach ₹40,000 crore, cleared sugarcane payment arrears, and improved market viability for maize cultivation.
Mileage & PerformanceE20-ready vehicles show better acceleration and smoother rides. Carbon emissions are 30% lower compared to E10 fuel. Higher octane rating improves engine performance. Mileage drop for E10 vehicles is marginal.
Vehicle CompatibilityE20 meets all BIS and automotive standards. Older vehicles may need earlier replacement of rubber seals and gaskets. Global examples like Brazil's E27 fuel show feasibility.
Cost & InsuranceEthanol prices sometimes higher than refined petrol. Insurance validity remains unaffected by E20 use.
Future PlansE20 fuel to continue until October 31, 2026. Future blending beyond 20% will involve consultations with automakers, ethanol producers, and experts.

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