The introduction of E20 petrol in India is poised to significantly benefit farmers, promising earnings of around ₹40,000 crore in the current year. Simultaneously, the government is expected to save approximately ₹43,000 crore in foreign exchange through this initiative. This data was revealed in a collaborative statement issued by the Automotive Testing Agency ARAI, along with oil-selling companies and vehicle manufacturers.
The ethanol-blended petrol program was launched in 2001 and has since gained considerable traction. The primary aim of the government is to reduce reliance on crude oil imports and to enhance the income of farmers. As reported, this program has led to a reduction of 736 lakh metric tons of carbon dioxide emissions, equivalent to planting 300 million trees.
**Economic Impact Over a Decade**
Over the past 11 years of its expansion, the program has helped India conserve approximately ₹1.44 lakh crore in foreign exchange. Additionally, 245 lakh metric tons of crude oil have been replaced by ethanol. The initiative has transformed farmers, shifting their role from “food providers” to “energy providers”, as the money previously allocated for crude oil imports is now being channeled into the rural economy.
**Addressing Fuel Efficiency Concerns**
The statement also addressed apprehensions regarding the E20 fuel blend. It clarified that vehicle mileage in real-world scenarios is mainly influenced by driving behavior, vehicle maintenance, age, and tire condition, and not primarily by the ethanol content. Testing on older vehicles indicated only a minor reduction in mileage.
**Key Advantages of E20**
Ethanol boasts an octane rating of 108.5, significantly higher than petrol’s 84.4. This attribute enables modern, high-compression engines to function more efficiently, particularly in urban driving conditions. Moreover, the inclusion of ethanol has elevated petrol quality to RON 95 under BS-VI standards from RON 88, effectively mitigating knocking and enhancing overall performance.
**Countering Misinformation**
The statement also addressed and refuted recent social media rumors that alleged the infiltration of water into fuel tanks and the potential compromise of insurance coverage due to the use of ethanol-mixed petrol. The All India Petroleum Dealers Association confirmed that they have not received any customer complaints related to ethanol blending nationwide. Both government officials and insurance firms have reassured that the use of ethanol petrol will maintain the validity of vehicle insurance policies, with no impact on warranties or coverage.