India’s E20 Fuel Shift Sparks Confusion For Car Owners and Manufacturers: Reuters

The Indian government is facing pushback from motorists following the nationwide rollout of petrol blended with 20% ethanol (E20). Concerns have risen, particularly among owners of older vehicles, that the fuel could affect performance, amid a lack of clarity from some automakers, Reuters reported.

India, the world’s third-largest car market, had set a 2025 target for nationwide adoption of E20 fuel as part of Prime Minister Narendra Modi’s clean energy push. But in recent weeks, E20 has become the default option at nearly all of the country’s 90,000 fuel stations. Lower ethanol blends like E5 and E10, seen as more compatible with older cars, have largely been phased out.

While the government has maintained that E20 reduces carbon emissions, it has acknowledged in public statements that older cars could suffer a “marginal” decline in fuel efficiency. Meanwhile, automakers, already grappling with softer sales and shortages of rare-earth magnets have issued mixed guidance. This has fueled consumer frustration, with a public interest litigation against the policy scheduled to be heard in the Supreme Court on Monday.

Fuel station operators have also reported tension. Two managers in Lucknow told Reuters that drivers were reacting angrily, forcing some stations to avoid informing customers about the change. “People hurl abuse at us. We then decided to not tell people about it,” said Ramesh Pandey, a station manager.

Reuters quoted Petroleum Minister Hardeep Singh Puri defending the rollout: “India’s ethanol journey is unstoppable. Some lobbies with vested interests are actively attempting to create confusion.” Days later, his ministry noted that “in case of certain older vehicles, some rubber parts and gaskets may require replacement,” describing it as a “simple process.” The ministries of petroleum and road transport did not respond to Reuters’ requests for further comment.

Automakers, meanwhile, are scrambling to reassure customers. Skoda, for instance, stated on its website that cars sold in India before April 2020 “are not evaluated” for E20, while vehicles sold afterward are “fully material-compatible.” Toyota said a “modest variation” in fuel economy is likely.

Renault initially told one customer via email that his 2022 Triber “had not been tested” for E20 and it was “not advisable” to use the fuel. After the exchange went viral on X (formerly Twitter), Renault clarified in a statement to Reuters that government tests showed E20 posed “no serious challenges” for older vehicles. The customer, tech consultant Ankur Thakur, told Reuters he remains unconvinced and has switched to expensive no-ethanol petrol available at select outlets. “Just give me the right fuel my car was originally made for,” he said.

A Reuters review of a fuel tank flap and manual of an Audi Q3 purchased in India last year recommended only E5 and E10 fuels. Similarly, a 2024 Mahindra Scorpio carried a warning sticker stating: “CAUTION. PETROL/E10 FUEL ONLY.” Neither Mahindra nor Audi responded to Reuters’ queries.