The adoption of E20 petrol in India is expected to yield substantial financial benefits for farmers, with an estimated ₹40,000 crore in earnings projected for this year. Additionally, the government is poised to save approximately ₹43,000 crore in foreign exchange through this initiative. The information was released in a joint statement by the Automotive Testing Agency (ARAI), in collaboration with oil marketing companies and vehicle manufacturers.
The ethanol-mixed petrol program began in 2001 and has since gained significant traction. The government’s aim is to diminish reliance on crude oil imports and augment farmers’ incomes. As stated, the initiative has led to a reduction of 736 lakh metric tons of carbon dioxide emissions, equivalent to planting 300 million trees.
**Positive Economic Impact Over a Decade**
Over the past 11 years of its expansion, the program has enabled India to save approximately ₹1.44 lakh crore in foreign exchange. Furthermore, 245 lakh metric tons of crude oil have been replaced by ethanol. This program has also transformed farmers, shifting their role from “food providers” to “energy providers,” as funds previously allocated to crude oil imports are now directed towards the rural economy.
**Addressing Fuel Efficiency Concerns**
The statement addressed concerns regarding the E20 fuel blend, clarifying that real-world vehicle mileage is mainly influenced by driving practices, vehicle upkeep, the vehicle’s age, and tire condition, rather than the ethanol content. Testing conducted on older vehicles revealed only a minor decrease in mileage.
**Key Advantages of E20**
Ethanol possesses an octane rating of 108.5, surpassing petrol’s 84.4. This characteristic permits modern, high-compression engines to operate more efficiently, particularly in urban driving conditions. Moreover, the introduction of ethanol has upgraded petrol quality to RON 95 under BS-VI standards from RON 88, effectively preventing knocking and enhancing overall performance.
**Dispelling Misinformation**
The statement also refuted recent social media rumors that alleged the infiltration of water into fuel tanks and potential disruptions to insurance coverage due to the use of ethanol-mixed petrol. The All India Petroleum Dealers Association confirmed that it has not received any customer complaints regarding ethanol blending throughout the country. Government officials and insurance providers have also assured that vehicle insurance policies will remain fully valid with the use of ethanol petrol, with no effect on warranties or coverage.