Government may hold off on higher ethanol mandate

NEW DELHI: The government may not immediately mandate a higher level of ethanol blending but leave it to buyers to decide on flex fuel vehicles amid concerns that rushing from E20 to E25 will damage engines of existing vehicles.

Most cars and 2-wheelers manufactured between 2012 and March 2023 were designed or certified to be E10-compliant, while those produced from April 2023 are E20 material-compliant, meaning they are designed to handle petrol blended with up to 20% ethanol. But only vehicles sold from April 2025 are fully E20-compliant. Government is also readying standards for E22, E25, E27 and E30, allowing for up to 30% ethanol in petrol. Besides, it is starting trials for E25 vehicles, which will take time.

Higher ethanol blending to hit mileage: Experts

But there are concerns about fast-tracking the process, especially given the number of pre-2025 vehicles on roads.
Auto industry executives and experts said that since most existing petrol vehicles are not fully material- and fuel-compliant even with E20 fuel, any mandatory increase in ethanol blending would not only reduce mileage but also raise maintenance costs for such vehicles, impacting a large section of vehicle owners.

The industry, however, is ready to roll out flex fuel vehicles, with Maruti Suzuki and Hero MotoCorp hitting the road and others readying their launch plans. The auto industry has pitched for calibrating an increase in blending, a politically attractive proposition in states where there is high cane production. Besides, the powerful sugar lobby is also pitching for it.

According to Niti Aayog report of 2021 on the E20 roadmap, vehicles designed for E10 and calibrated for E20 are likely to experience a 1-2% reduction in fuel efficiency, although users claim that the actual drop in mileage is higher. So, vehicles that were manufactured before March 2023 would experience more mileage loss in case higher ethanol blending becomes mandatory.

Officials involved in preparing the report said that any phased move beyond the mandatory 20% ethanol blending in petrol would require upgrades in vehicle technology. “In such a situation, it would be better to promote the adoption of flex-fuel vehicles, which can run on both E20 and higher ethanol blends, rather than introducing multiple grades of mandatory blending. Otherwise, vehicle engines would need to be modified to accommodate different grades of blended fuel,” said an expert.

Experts also said that the best option before the government is to provide separate dispensers for E20 and higher-blend petrol at fuel stations, giving vehicle owners the freedom to choose the fuel best suited to their vehicles. They added that the government has partially addressed concerns over the prices of E85 fuel by fixing it at Rs 82.12 per litre in Delhi.
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