E-20 Fuel Policy Impacts Mileage, Maintenance Cost Of Older Vehicles: LocalCircles Report

Owners of old vehicles are facing increased maintenance costs and reduced mileage post the roll out of E-20 fuel policy, according to a LocalCircles report. E-20 fuel policy, which came into effect from April, mandates blending 20% ethanol in gasoline.

Eight in 10 petrol vehicle owners said fuel efficiency and mileage have reduced in 2025 after the E20 policy rollout, according to the report. Users are reporting 2–6% drop in mileage and a rise in fuel costs and consumption despite the "green" intent.

The problem is more prevalent in vehicles purchased in 2022 or years prior, according to LocalCirlces, India's community social media platform.

More than 80% of petrol vehicles sold in India between 2011 and 2025 are commonly compatible with E-5 or E-10 blends. According to this data, about 23.4 crore vehicles have been affected, LocalCircles said.

An Audi Q7 owner from Chennai said he spent Rs 4 lakh in repairs after water-mixed 20% ethanol caused engine failure, the report stated, citing an individual post on X.

LocalCircles cited another post on X where a user shared that his Ferrari refused to start because of E-20 induced phase separation and "technicians confirmed fuel damage."

"Turbo petrol vehicles like Toyota Hycross reported 3 injector failures within 5,000 km while two-wheelers face misfiring," LocalCircles stated, citing media reports.

A LocalCircles survey in August had revealed that 28% petrol vehicle owners were experiencing unusual levels of wear and tear or repairs in engine, fuel line, tank, and carburetor.

Another survey, conducted six months after the E-20 policy rollout, received over 36,000 responses from petrol vehicle owners located in 323 districts of India. Among respondents, 45% were from Tier 1, 27% from Tier 2, and 28% respondents were from Tier 3,4,5 and rural districts, the report said.

The complaints peaked in July–October. Vehicle owners, who have been facing issues, have started tagging ministers Nitin Gadkari and Hardeep Singh Puri for issues like regional non-E20 availability, LocalCircles said.

Gadkari claimed no vehicles had been affected and dismissed the complaints as "misinformation," the report stated.