Ethanol-blended petrol is gaining traction as part of government initiatives, raising questions about its cost-effectiveness and potential impact on vehicle mileage for consumers.
India launched E85 ethanol fuel (₹20 cheaper) to cut oil imports, but LocalCircles found 50% of drivers experienced 20% mileage drops. For tech operations, this policy signals fleet risk: government commitment despite documented mileage penalties creates budget uncertainty for procurement.
Ethanol is a biofuel derived from sugarcane
Jun 11, 2026
04:01 pm
What's the storyThe Indian government is pushing for ethanol-blended fuels in a bid to reduce reliance on imported crude oil and lower vehicular emissions.
But this has left many consumers questioning the impact of these new fuel blends on their vehicles.
Critics say many vehicles in India are not biofuel-compliant, and its use could put engines at risk. The government denies this.
After strong advocacy for higher ethanol blending and flex-fuel vehicles by Union Ministers Nitin Gadkari and Hardeep Singh Puri,…
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