Nitin Gadkari E20 Petrol Mileage: Govt Confirms 2-6% Efficiency Drop in Lok Sabha
E20 Petrol Mileage: Union Minister Nitin Gadkari told the Lok Sabha that E20 petrol causes a 2-6% fuel efficiency drop in certain E10-designed vehicles, in a statement also covering pricing mechanics, farmer income gains, and how India shielded consumers during the West Asia crude oil crisis.
Parliament reply reveals the real numbers behind E20 petrol — mileage impact, pricing mechanics, and how India kept fuel prices stable during the recent crude oil crisis.
Nitin Gadkari E20 Petrol Mileage: Union Minister for Road Transport and Highways Nitin Gadkari told the Lok Sabha on July 30, 2026, that E20 petrol causes a fuel efficiency reduction of about 2-6% in certain E10-designed vehicles, in a written statement tabled in response to a starred question from Shri M K Raghavan on the impact of mandatory E20 fuel on consumers, automobile manufacturers, and the transport sector.
The statement addressed five specific parts covering consumer impact assessment, ethanol blend disclosure at fuel stations, stakeholder consultation, retail pricing, and financial incentives for biofuel adoption.
E20 Petrol Mileage: The mileage figure
The statement said studies by government agencies and automobile manufacturers indicate that reduction in fuel efficiency in certain E10-designed vehicles is limited to about 2-6%. The statement added that this figure is influenced by several factors, including driving conditions, driving habits and vehicle maintenance.
E20 Petrol Mileage: Why ethanol percentage isn’t printed on receipts
On the question of whether oil marketing companies have been directed to display ethanol blend percentage at fuel stations and on customer receipts, the statement said Public Sector OMCs have informed the ministry that normal petrol sold at retail outlets across the country is currently E20. Since E0 or E10 petrol is not marketed at retail outlets, the statement said separate display of lower ethanol blends or printing of ethanol percentage on customer receipts has not been considered necessary. The statement noted that wherever E85 fuel is sold, the dispensing units are prominently labelled, as this fuel is intended exclusively for use in Flex Fuel Vehicles (FFVs).
E20 Petrol Mileage: Pricing mechanics and the West Asia crisis
On whether the end price to consumers has stayed the same despite ethanol dilution, the statement said the retail selling price of E20 petrol is market-determined, with Public Sector OMCs setting prices after considering international crude oil prices, exchange rates, freight, taxes, ethanol procurement costs and other operational expenses.
The statement cited February-March 2026 as an example, when the retail selling price of petrol remained below the market-determined level, resulting in an under-recovery of approximately Rs. 21,300 crore for public sector OMCs on account of petrol.
The statement said that during the recent West Asian crisis, India shielded consumers through calibrated Government interventions, diversified sourcing, and the increasing contribution of domestically produced biofuels. Since February 2026, the statement said, global crude prices rose by around 70-80%, while domestic fuel prices increased only by about 7-8%.
The statement said that during the peak of the West Asia crisis, the market price of petrol could have been around Rs. 125 per litre, but Indian consumers continued to pay Rs. 94.77 per litre (ex-Delhi), a figure the statement attributed partly to OMCs procuring ethanol at approximately Rs. 70 per litre.
E20 Petrol Mileage: Financial incentives for biofuel vehicles
On whether financial incentives are given to vehicle owners for switching from conventional fuels to biofuels, the statement said E85 fuel, intended exclusively for Flex Fuel Vehicles (FFVs), is priced nearly Rs. 20 per litre lower than conventional blended petrol. The statement said this pricing is meant to ensure that the economic benefits of domestically produced ethanol are passed on to consumers, but noted that E85 fuel can be used only in specially manufactured flex fuel vehicles.
E20: Programme-wide numbers
The statement said the Ethanol Blended Petrol Programme has resulted in foreign exchange savings of about Rs. 1.98 lakh crore, substitution of nearly 317 lakh metric tonnes of crude oil, reduction of around 952 lakh metric tonnes of CO₂ emissions, and additional income of over Rs. 1.66 lakh crore for farmers.
The statement also included a year-wise blending progression table, showing average ethanol blending rising from approximately 1.53% in 2013-14 to approximately 20% in the 2025-26 supply year (November-June).
