2 in 3 vehicle owners with a vehicle that was purchased in 2022 or earlier say their vehicle’s fuel efficiency/mileage has reduced in 2025; Oppose Government’s move to mandate E20 petrol

August 05, 2025, New Delhi: Even as the government is moving ahead with its plans for higher blend of ethanol in petrol and studying options for blending biofuel in diesel to reduce import dependence for transport fuels, there is a strong apprehension among old vehicle owners as to what it would mean for them in terms of fuel consumption and financial impact.

This fear is not without basis. While ethanol-blended fuel might offer some advantages like higher octane and potentially lower emissions, it can also lead to reduced fuel efficiency in vehicles not optimized for it.

For example, E20 fuel or fuel with 20% ethanol and 80% gasoline may result in a 5-7% reduction in fuel efficiency compared to pure gasoline. However, ethanol's higher-octane rating can improve engine performance. Some newer flex-fuel vehicles are designed to optimize efficiency with higher ethanol blends, according to experts.

Having achieved 20% blending of ethanol in petrol, the government is planning to increase the target to 27%. The Bureau of Indian Standards (BIS) has been instructed to come up with norms for the new blended fuel, to be called E27, on a priority basis, media reports claim. In tune with the plans, the road transport and highways ministry has asked the country’s premier vehicle testing and certification agency, Automotive Research Association of India (ARAI), to carry out research on modification of engines for allowing use of petrol with 27% ethanol blending.

These proposals have been rolled ahead of a final report by an empowered group of secretaries to be submitted soon on the roadmap to increase the percentage of ethanol in petrol as India strives to reduce its dependence on imported fossil fuel. The BIS has meanwhile been asked by the government to come up with the fuel standard for 10% blend of isobutanol (IBA) in diesel, media reports state. A 10% blend IBA in diesel is a potential biofuel option India is exploring as diesel engines vehicles far surpass petrol vehicles. However, this may require some engine adjustments depending on the specific engine and its operating conditions.

Meanwhile, in a move to allow vehicle manufacturers to produce 100% ethanol-fueled vehicles (E100) and enable their registration, the road transport ministry has issued draft norms and sought response from all stakeholders. Though the government is aggressively pushing ahead with ethanol blending in transport fuel, manufacturers have clearly stated that their older models of vehicles are calibrated for E10 fuels and using E20 fuels, which is not covered under warranty, could damage them.

With not everyone having vehicles adapted to the use of ethanol blended petrol, particularly 10% and more, LocalCircles has conducted a survey of petrol vehicle users to find out their experience of currently available transport fuel. The survey received over 36,000 responses from petrol vehicle owners located in 315 districts of India. 68% respondents were men while 32% respondents were women. 44% respondents were from tier 1, 27% from tier 2 and 29% respondents were from tier 3, 4, 5 & rural districts.

2 in 3 vehicle owners with a vehicle that was purchased in 2022 or earlier say their vehicle’s fuel efficiency/mileage has reduced in 2025

As many petrol vehicle owners have been complaining on social media and other public platforms about the reduced efficiency of the transport fuel, the survey asked, “If you have a vehicle that was purchased in 2022 or years prior, how much has the fuel efficiency/ mileage of your vehicle(s) reduced in 2025 as compared to years prior?” The question received 22,282 responses. 11% of respondents stated that the fuel efficiency/ mileage has reduced “by over 20%”; 22% of respondents stated it has reduced by “15-20%”; 11% of respondents stated it has reduced by “10-15%”; 14% of respondents stated it has reduced by “2-5%”; 4% of respondents stated it has reduced by “2-5%”; 5% of respondents stated it has decreased by “1-2%; however, 11% of respondents stated there has been “no impact” and 22% of respondents did not give a clear answer. To sum up, 2 in 3 vehicle owners with a vehicle that was purchased in 2022 or earlier say their vehicle’s fuel efficiency/mileage has reduced in 2025. This clearly indicates that there is an issue at hand and it is leading to reduced fuel efficiency this year and as a result having a financial impact on such vehicle owners.

2 in 3 petrol vehicle owners are against the Government move to mandate E20 petrol; Only 12% in support

Given the concerns on reduced efficiency of their vehicles, the survey asked petrol vehicle owners, “Usage of E20 petrol (20% ethanol blended with petrol) in vehicles not designed for it reduces fuel efficiency and increases wear and tear of the vehicle. Do you support the government mandate to only sell E20 petrol or should it be revised?” The question received 14,127 responses with 12% stating “yes, I support” the government move; 44% of respondents stated “no, I oppose and it should be revoked”; 22% of respondents stated “no, I oppose the current mandate but will support it if consumer is given options (E5, E10, E20) and price incentives”; 22% of respondents did not give a clear answer. To sum up, 2 in 3 petrol vehicle owners are against the Government move to mandate E20 petrol. Only 12% of those surveyed are in support of the government move.

In summary, as the government proceeds to increase the ratio of ethanol in petrol, 2 in 3 vehicle owners with a vehicle that was purchased in 2022 or earlier say their vehicle’s fuel efficiency/mileage has reduced in 2025. Not surprisingly, 2 in 3 petrol vehicle owners are against the government’s move to mandate sale of E20 petrol. Only 12% of those surveyed are in favour of E20 petrol being mandated.

Given the consumer response to the petrol blended with 20% ethanol due to its reduced efficiency/ mileage and thus more expenses, the government should provide them with options as is already given not just between petrol and diesel but also normal and premium products. Manufacturers should also help in the transition. As consumers upgrade to new models of vehicles, the demand for E20 fuel is bound to increase with less concerns. LocalCircles will be sharing the findings of this study with key stakeholders in the Government of India for their review and intervention.

Survey Demographics

The survey received over 36,000 responses from petrol vehicle owners located in 315 districts of India. 68% respondents were men while 32% respondents were women. 44% respondents were from tier 1, 27% from tier 2 and 29% respondents were from tier 3, 4, 5 & rural districts. The survey was conducted via LocalCircles platform, and all participants were validated citizens who had to be registered with LocalCircles to participate in this survey.