The Ministry of Petroleum and Natural Gas has explained why Indian motorists cannot choose between pure petrol, E10 and E20 at the pump, after opposition parties and vehicle owners demanded that older, non-compliant cars be allowed access to lower ethanol blends.
In a detailed clarification issued on Friday, the ministry said running parallel supply chains for three separate fuel grades across India's more than 1 lakh retail outlets would be logistically impractical, citing the added costs of storage, inventory management and distribution across the country's refineries, terminals, depots and pipelines.
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The ministry dismissed comparisons to premium fuel variants, arguing that those are niche, limited-quantity products with performance additives rather than separate nationwide base fuel streams. It also defended the broader ethanol-blending push, noting that public sector banks have financed nearly Rs 1 lakh crore annually in ethanol production infrastructure, investments it said would be jeopardized by any retreat to E10.
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Mileage Dip Offset by Other Gains, Says Ministry
The government acknowledged some vehicles could see a 3-5% dip in fuel economy on E20 but argued this is offset by higher octane, cleaner combustion and reduced crude oil imports. Citing field data from Maruti Suzuki and Hero MotoCorp, it said no E20-related corrosion or abnormal wear has been reported, even in older vehicles.
The clarification comes as concerns over engine compatibility have pushed some Delhi motorists toward pricier premium petrol variants, with demand reportedly doubling at several fuel stations. Petroleum Minister Hardeep Singh Puri has separately rejected claims of engine damage, saying no decision has been made on blends beyond E20.
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