The introduction of E20 petrol, a blend of 20% ethanol and 80% petrol, has sparked debate across India, with concerns rising among vehicle owners regarding its impact on mileage and engine health. While the government and automotive industry bodies assure the public of its safety and overall national benefits, consumers are reporting noticeable reductions in fuel efficiency, leading to increased expenses.

Mileage Concerns and Economic Impact

Automotive industry experts indicate that E20 petrol could reduce fuel efficiency by 2-5%, depending on the vehicle type. This is primarily attributed to ethanol's lower energy density compared to petrol. For instance, a Delhi-based automobile engineer noticed a significant drop in his car's mileage after using E20 fuel. While the Oil Ministry has downplayed claims of a "drastic" reduction in fuel efficiency, the Society of Indian Automobile Manufacturers (SIAM) acknowledges a marginal decline due to the fuel's nature. Some vehicle owners have even reported efficiency losses as high as 6-8%. Niti Aayog, a government think tank, had suggested that the retail price of blended fuels should be lower than normal petrol to compensate for the reduction in calorific value and incentivize switching to the blended fuel.

The economic implications of this mileage drop are significant for consumers, who continue to pay similar prices at the pump despite getting less distance per liter. This situation has led to questions about whether the benefits of ethanol blending are being fairly distributed, as the savings on crude oil imports primarily benefit the government, while the burden of reduced mileage falls on the end-users.

Long-Term Effects on Vehicles

In addition to mileage concerns, there are worries about the long-term impact of E20 fuel on vehicle engines, particularly older models not designed to be E20-compliant. Experts caution that the use of E20 fuel in non-compliant vehicles may lead to the erosion of gaskets, fuel rubber hoses, and pipes over time. Ethanol's corrosive nature can degrade plastic and rubber components, potentially causing shrinkage, swelling, and cracking.

Despite these concerns, SIAM asserts that vehicle manufacturers will honor warranties, even for older vehicles, if issues arise due to E20 fuel usage. The Automotive Research Association of India (ARAI) also states that studies have not found any adverse impact on vehicles using E20 fuel.

Government and Industry Perspectives

The government and industry bodies emphasize the broader national benefits of ethanol blending, including reducing import dependence, saving foreign exchange, and promoting a sustainable and green economy. Ethanol blending also supports the rural economy by providing income to farmers and reducing carbon emissions. Since 2014-15, ethanol blending has substituted a significant amount of crude oil imports, resulting in substantial savings in foreign exchange and a reduction in carbon dioxide emissions.

The Ministry of Petroleum and Natural Gas has refuted claims of negative impacts, citing international studies and tests by ARAI, IIP, and IOCL that show no significant differences in performance or wear and tear in legacy vehicles using E20 fuel. They also highlight that E20-enabled vehicles offer good performance due to ethanol's higher heat of vaporization, which leads to improved engine volumetric efficiency.

Consumer Experiences and Way Forward

Despite assurances from the government and industry, many consumers continue to report lower fuel efficiency and express concerns about potential engine damage. A recent survey indicated that a significant percentage of owners of older cars have experienced engine issues after using E20 petrol. To address these concerns, some experts suggest passing on some of the discount on fuel prices to consumers to make the use of E20 fuel more acceptable. The government may consider tax breaks on ethanol as a fuel to compensate for the reduction in calorific value and incentivize switching to the blended fuel.

Ultimately, a balanced approach is needed that acknowledges the concerns of consumers while promoting the long-term benefits of ethanol blending for the nation. This includes ensuring fair pricing, providing clear information about vehicle compatibility, and addressing potential issues related to engine health and maintenance.