New Delhi:  India’s contentious nationwide rollout of a new kind of fuel for vehicles shows how sweeping changes—affecting millions of vehicles, food supplies, and water—can be made through government orders alone, without meaningful public, legal, or parliamentary oversight.

On 8 August 2025, the government announced it had reached its target for rolling out E20 petrol, with 20% ethanol by volume, five years ahead of schedule. The next day, the petroleum secretary confirmed that retail pumps across India would only stock E20. 

This left a big problem unaddressed: most vehicles in India aren’t ready for E20.

By December 2023, India had 385 million  registered vehicles. Sales data show about 84% of new vehicles run on petrol. That means more than 320 million Indian vehicles use petrol.

An Ethanol Roadmap issued in 2021 by NITI Aayog, a government think tank, said most Indian two-wheelers and passenger vehicles were designed for pure petrol or up to E10 (10% ethanol). Higher blends mean changes to engine materials and tuning. 

The auto industry’s body SIAM said in December 2022 that E20-ready car materials would roll out from 2023, and engines tuned to E20 fuel from 2025. Most vehicles built before these years cannot run on E20 without risk.

Auto companies and insurers have already distanced themselves from the fallout. Shell India’s website says it accepts no responsibility for any damage that ethanol-blended fuel might cause, and warns users about blending above manufacturer specifications. 

A private insurer publicly noted that engine damage from fuel incompatibility isn’t covered by standard motor insurance. Big carmakers—Hyundai, Kia, Maruti Suzuki, Jeep—include clear disclaimers voiding warranty if higher ethanol blends are used.

SIAM had previously said retrofitting existing vehicles was not practical, given the scale and diversity of India’s fleet, cost, and lack of consumer support. Later, the industry gave cautious approval but warned that older vehicles would struggle. 

Laboratory studies (here and here) show ethanol sharply increases corrosion in fuel systems, especially above 10% blend. Ethanol attracts water, reacts with acids, and speeds up corrosion of pipes, tanks, and connectors.

Ethanol comes from crops—mainly sugarcane and maize, but also rice, damaged grain, and crop waste. In 2019, the government created the Pradhan Mantri JI-VAN Yojana (with an amendment), giving big boosts to ethanol distilleries.

The Global Comparison

By comparison with other nations, India’s rollout of E20 petrol has been implemented nationwide on a tight timetable and via administrative orders rather than a dedicated law or phased transition process. 

The scale, speed and legal mechanism differ markedly from the US and European Union (EU) incremental and cautious model and Brazil’s gradual build‑up and vehicle‑fleet adaptation. 

In the United States, the most common blend is E10, which is approved for use in virtually all conventional petrol vehicles. The higher blending level E15 (15 % ethanol) is approved only for model‑year 2001 or newer light‑duty vehicles. Sales of E15 nationally have also faced regional restrictions and regulatory waivers. 

In Brazil, ethanol blending has been far more ambitious and long‑standing: since the 1970s, there has been a mandatory blend of ethanol in petrol, rising to around 20‑25 % (E20–E25) and more recently moving toward 27‑30 % (E27–E30). Brazil has a large fleet of flexible‑fuel vehicles capable of running on up to E100 (pure ethanol) or high‑ethanol mixes. 

In the European Union, fuel quality rules and biofuel directives limit ethanol in petrol to 10% by volume (E10) for standard vehicles, with most sales comprising E5 (up to 5%) and E10 blends; only about 0.4% of petrol sales exceed 10% ethanol. 

EU regulations emphasise compatibility with existing vehicles, engine systems and cross‑border fuel markets, and blend increases are introduced gradually under legislative oversight. 

In contrast, India’s national move to mandate only E20 petrol did not include an incremental legal transition, and was applied across a large existing vehicle fleet not designed for the higher blend. 

This difference—in blend percentage, legislative backing and vehicle compatibility—highlights how India’s rollout diverges from more cautious global models.

Cut In Mileage, Weak Green Claims

Ethanol burns differently from petrol—it has lower energy, and engines not tuned for E20 are less efficient (here and here). US government data show E10 cuts mileage by about 3.7%, and E20 by about 7.7%.

Responding to driver complaints, the union government said the drop in mileage was “marginal”. But for most drivers, every litre gives them less distance.

General and India-specific research (here finds that ethanol’s “greener” reputation depends on whether it really cuts emissions for the whole cycle—from growing crops to burning fuel. 

But, any cut in mileage for untuned engines wipes out most of ethanol’s environmental advantage. Another hit comes from emissions, land, water, and energy used in growing, processing, and transporting the ethanol.

A 2023 report documented pollution and crop damage near ethanol plants—locals reported water and soil contamination, livestock illness, and crop losses. Scientific reviews blame untreated run-off for degrading water and farmland.

Strain On Water, Land, Food Systems

A 2024 study estimated E20 would need 10 billion litres of ethanol a year by 2025, 12 billion by 2030, and 20 billion by 2050. That means needing 3.5 to 10 million more hectares of farmland in two decades. 

Existing fallow land would get exhausted years ahead of current projections, and forest land would be next. Groundwater needed for irrigation would jump by 30%.

Water scarcity is already severe: 548 out of 729 districts in India face some water stress. Sugarcane is extremely water-hungry: one tonne produces 70 litres of ethanol, but growing a single kilo of sugar requires between 1,600 and 2,000 litres of water. 

Making a litre of ethanol from cane uses roughly 2,860 litres of water. Sugarcane and paddy together account for about 70% of India’s irrigation water.

India’s food economy is feeling the heat. Maize, rice, and other food grains are now diverted to make fuel, changing how and what farmers grow, and inflating prices.

In 2024, India, once a maize exporter, became a net importer of maize for the first time. Local maize prices have jumped, hurting feed-heavy businesses like poultry. The poultry industry wants permission to import GM maize feed to manage costs.

Policy has boosted grain diversion for ethanol. Under the Open Market Sale Scheme, distilleries could buy FCI rice at a fixed reserve price, capped at 2.4 million tonnes. In May 2025, another 2.8 million tonnes were added, reaching 5.2 million tonnes in one year. 

That’s 5.2 billion kg of rice—enough to cover the public distribution system (PDS) entitlements of about 90 million people for a year. The PDS is the government’s food security mechanism that distributes subsidised grains to eligible households through a network of fair-price ration shops..

Government crop data show rising maize production to meet ethanol demand—but it’s at the cost of pulses and oilseeds vital to the nutrition of Indians.

From Standards To Silent Ban

The Bureau of Indian Standards (BIS) Act, 2016 and BIS Rules were meant to ensure safe and quality goods for consumers. An Indian Standard called IS 2796:2017 originally allowed petrol blends up to 10% ethanol (E10), with IS 17021:2018 for E20 fuel.

A July 2025 amendment to petrol standards states that IS 2796 covers petrol only if it’s being blended for E20, quietly eliminating pure and lower-ethanol petrol as finished products: though the amendment isn’t officially in force, E20 is now the only petrol available. 

This change stretches BIS’ mandate beyond standard-setting to practically banning lower-ethanol fuels.

The National Policy on Biofuels 2018 allowed edible crops and food reserves to be diverted to ethanol—although no law authorises this shift. Its 2022 amendment shifted the E20 goal to 2025–26, massively cutting the time for the country’s vehicles or agricultural supply chains to adjust.

No Checks From Parliament Or Courts

The National Biofuels policy and Petrol Standard Amendment together now create a nationwide mandate: everyone has to use E20, whether or not their engine can run on it.

No independent, public studies examined E20’s effect on vehicles, fuel efficiency, or the environment. Consultation involved the Automotive Research Association of India, SIAM, oil companies—but no consumer or independent public impact studies.

Three legal challenges have reached court. 

In 2023, the Delhi High Court refused to intervene on food security grounds, citing judicial restraint. In August 2025, the Supreme Court dismissed one challenge against E20 as the only available petrol, and a second petition, which questioned the legal backing for the ban on lower-ethanol petrol, at the very outset of the proceedings. The author of this article worked on the second of these two cases before the Supreme Court. 

Parliament has not held a debate or inquiry on the impact or legality of the E20 policy. No one has reviewed or limited the powers being exercised—despite major consequences for vehicle owners, the environment, and food and water security.

(Nilotpal Datta is an independent lawyer working on Constitutional and human rights issues.)

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