India’s transition to E20 petrol is set to provide substantial financial benefits to farmers, with an estimated ₹40,000 crore in earnings projected for this year. Furthermore, the government anticipates saving around ₹43,000 crore in foreign exchange as a result of this move. This information was shared in a joint statement released by the Automotive Testing Agency ARAI, alongside oil companies and vehicle manufacturers.
The ethanol-blended petrol program was initiated in 2001 and has since gained considerable momentum. The government’s goal is to lower crude oil imports and boost farmers’ incomes. The statement highlights that the program has already curtailed 736 lakh metric tons of carbon dioxide emissions, which is comparable to planting 300 million trees.
**Eleven Years of Positive Impact**
Over the past 11 years, since the program’s expansion, India has saved approximately ₹1.44 lakh crore in foreign exchange. The initiative has facilitated the substitution of 245 lakh metric tons of crude oil with ethanol. This program has repositioned farmers, transforming them from “food providers” into “energy providers,” as funds previously spent on crude oil imports are now redirected to the rural economy.
**Clarification on Mileage Concerns**
The statement also addressed worries related to the E20 fuel blend. It clarified that actual vehicle mileage is primarily influenced by driving habits, vehicle maintenance, the vehicle’s age, and tire condition, not the ethanol content. Testing conducted on older vehicles revealed only a minor decrease in mileage.
**Benefits of E20 Explained**
Ethanol has an octane rating of 108.5, in contrast to petrol’s 84.4, enabling modern high-compression engines to operate more efficiently, especially in urban settings. Moreover, the addition of ethanol has enhanced petrol quality to RON 95 under BS-VI standards from RON 88, leading to the prevention of knocking and improved performance.
**Addressing Misconceptions**
The statement also addressed recent social media rumors alleging that ethanol-mixed petrol causes water to enter fuel tanks or affects insurance coverage. The All India Petroleum Dealers Association affirmed that they have not received any customer complaints regarding ethanol blending across the country. Government authorities and insurance companies have also confirmed that vehicle insurance policies will remain fully valid when using ethanol petrol, with no impact on warranties or coverage.