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E20 fuel to boost mileage, cut imports, says Indian minister

India's Road Transport Minister has backed ethanol-blended fuel as a solution to reduce petroleum imports and enhance vehicle efficiency. The government plans to promote flex-fuel vehicles capable of running on pure ethanol.

LSN India · 25 September 2026

E20 fuel to boost mileage, cut imports, says Indian minister

India's push toward ethanol-blended fuels could significantly reduce the country's dependence on petroleum imports while improving fuel economy, according to senior government officials. E20 fuel, which contains 20 percent ethanol and 80 percent petrol, is expected to deliver better mileage compared to conventional petrol, while lowering emissions.

The government has outlined an ambitious plan to transition automobile manufacturers toward flex-fuel engine technology that can operate on up to 100 percent ethanol. Such a shift would dramatically reduce India's annual petroleum import bill, estimated at over ₹22 lakh crore, while creating new economic opportunities in the agricultural sector through increased demand for ethanol feedstock.

Proponents of the E20 initiative argue that the fuel blend will not compromise vehicle performance or longevity. The transition aligns with India's broader climate goals and renewable energy strategy, positioning ethanol as a domestically produced alternative to imported crude oil.

The initiative is expected to benefit India's farming communities by creating fresh demand for agricultural produce used in ethanol production. Industry experts suggest that widespread adoption of flex-fuel vehicles could reshape India's energy landscape while supporting rural economies.