New Delhi: Union Petroleum Minister Hardeep Singh Puri on Friday strongly defended India’s ethanol blending programme, dismissing concerns over fuel efficiency and vehicle performance while highlighting the growing global acceptance of biofuels.
Addressing concerns that higher ethanol content could reduce mileage, Puri said ethanol is already being used in racing cars due to its performance advantages, including improved acceleration and better resistance to engine knocking. He acknowledged that fuel efficiency may decline marginally with higher ethanol blends but added that several factors influence mileage and the impact is generally limited.
The minister said the government’s ethanol programme has progressed only after extensive consultations with automobile manufacturers, industry bodies and testing agencies. He also rejected concerns that insurance coverage could be affected by ethanol blended fuels, noting that insurers have already clarified there is no such issue.
Puri emphasised that India’s rapidly expanding automobile market has sufficient room for multiple technologies to coexist, including electric vehicles, biofuel powered vehicles, hybrid models and CNG vehicles. He said any move beyond the current 20 per cent ethanol blend would be considered only after all required testing and evaluations are completed.
The minister’s remarks came as state owned oil marketing companies continue to deal with significant financial pressure following the recent surge in global crude oil prices triggered by tensions in the Middle East. According to government estimates, under recoveries on petrol, diesel and LPG reached nearly Rs 1.89 lakh crore during the April to June quarter of 2026.
While international oil prices have eased in recent weeks, Puri noted that companies are still processing crude purchased during the peak of the price spike. He indicated that any decision on reducing retail fuel prices would depend on whether lower crude prices remain stable over the coming months.
India achieved its E20 ethanol blending target in December 2025 and now ranks among countries increasingly adopting biofuels as part of their clean energy transition strategies.
