Addressing concerns over higher ethanol blends, Puri said there could be a slight reduction in mileage, though he cautioned that it may not necessarily be due to ethanol.
Petroleum Minister Hardeep Singh Puri on Wednesday defended the government’s ethanol blending programme, saying the biofuel is used in racing cars and helps improve acceleration.
“Somebody is saying that fuel mileage is going to drop. It is now well established that ethanol is even used in racing cars,” Puri said.
Addressing concerns over higher ethanol blends, Puri said there could be a slight reduction in mileage, though he cautioned that it may not necessarily be due to ethanol.
Acceleration improves. What is that called? Knocking? Knocking also improves. Mileage? Yes, it may drop a little. But it may drop slightly due to various factors. Secondly, after consulting all stakeholders, including SIAM and ARAI, we have reached this stage. Then someone says, ‘Your insurance will no longer cover this’. Insurance companies have already clarified that there is no such issue. But who benefits from spreading this false narrative? I am not going to make any accusations, but one thing should be very clear,” the minister said.
The minister added that India would consider moving beyond the current E20 fuel blend only “after enough number of tests have been conducted.”
“There is enough space in India’s growing consumer market for all technologies to coexist. There is room for electric vehicles, biofuel blended vehicles, and we are currently only at 20 per cent ethanol blending. If we move from 20 per cent to 25 per cent, it will happen only after all the necessary tests have been completed. There is also enough space for hybrid vehicles and CNG vehicles,” he added.
His remarks came as state-owned oil marketing companies continue to face losses after global crude oil prices surged following the Middle East conflict.
According to Puri, oil companies incurred losses of Rs 74,781 crore on the sale of petrol, diesel and LPG below cost for the period up to June 30. Total under-recoveries on petrol, diesel and LPG stood at Rs 1,88,871 crore during the April-June 2026 period.
He said international crude oil prices have since eased, but companies are still selling fuel refined from crude purchased at higher prices during the peak of the crisis.
“We are using the crude petroleum stock today that we had bought two months ago (at a price that existed two months ago),” the minister said.
Asked whether retail fuel prices could be reduced if crude prices remain lower, Puri said it was too early to take a call.
“If this (decline) continues for 2-3 months, we will see. But it is a hypothetical situation,” he said.
Ethanol Blending Is Safe: Ministry
Earlier, the Ministry of Petroleum and Natural Gas had reiterated that India’s ethanol blending programme is safe and dismissed claims that using E20 fuel could invalidate vehicle insurance policies.
The ministry said ethanol blending is a globally accepted practice adopted in countries including the United States, Brazil and Japan. It added that the programme has helped India save more than Rs 1.4 lakh crore in foreign exchange by reducing crude oil imports while supporting farmers through sustained demand for ethanol feedstocks.
“Ethanol blending plays an important role in enhancing India’s energy security, reducing carbon emissions and advancing the country’s transition towards cleaner mobility,” the ministry said.
