Government Considers Delaying Increased Ethanol Mandate
NEW DELHI: The Indian government is unlikely to mandate an immediate increase in ethanol blending levels, allowing consumers to choose flex fuel vehicles instead. This decision comes amid concerns that a rapid transition from E20 to E25 could damage the engines of existing vehicles. Most cars and two-wheelers manufactured between 2012 and March 2023 are designed for E10 compliance, while those produced from April 2023 are compliant with E20 standards, which permit up to 20% ethanol in petrol. Vehicles sold from April 2025 will be fully E20-compliant. The government is also preparing standards for E22, E25, E27, and E30, which would allow for up to 30% ethanol in petrol.
Higher Ethanol Blending to Hit Mileage: Experts
Concerns persist regarding the fast-tracking of ethanol blending, particularly given the number of vehicles on the road that predate 2025. Industry executives and experts warn that most existing petrol vehicles are not fully compliant with E20 fuel, and any mandatory increase in ethanol blending could lead to reduced mileage and higher maintenance costs for these vehicles. This situation could adversely affect a significant number of vehicle owners.
The auto industry is ready to introduce flex fuel vehicles, with companies like Maruti Suzuki and Hero MotoCorp already on the road, while others are preparing their launch plans. The industry advocates for a gradual increase in blending, a proposal that holds political appeal in states with high sugarcane production. The influential sugar lobby is also supporting this initiative. According to a 2021 Niti Aayog report on the E20 roadmap, vehicles designed for E10 and calibrated for E20 may experience a 1-2% reduction in fuel efficiency, although users report that the actual decrease in mileage is often higher. Vehicles manufactured before March 2023 are expected to suffer more significant mileage losses if higher ethanol blending becomes mandatory.
Officials involved in the report indicate that any phased increase beyond the mandatory 20% ethanol blending would necessitate upgrades in vehicle technology. Experts suggest that promoting the adoption of flex-fuel vehicles, which can operate on both E20 and higher ethanol blends, would be preferable to introducing multiple grades of mandatory blending. They also recommend providing separate dispensers for E20 and higher-blend petrol at fuel stations, allowing vehicle owners to choose the fuel that best suits their vehicles. The government has partially addressed concerns regarding the pricing of E85 fuel by setting it at Rs 82.12 per litre in Delhi.
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