Page 57 - Policy & Economic Report - July 2025

July 2026 POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

• The Government has also considered the large-scale real-world operating experience. India
witnesses approximately 8 crore vehicles visiting retail outlets every day (around 80% petrol
vehicles),

• The Government's assessment is also based on manufacturer service data. A leading OEM
serviced 2.84 crore vehicles during FY 2025-26, including approximately 1.5 crore vehicles that
were not originally certified as E20-compatible, and reported no E20-linked corrosion, abnormal
wear or reduction in component life. A leading 2 wheeler company has reported similar field
experience.

• Further, the rollout of higher ethanol blends was undertaken only after extensive consultation
with automobile manufacturers, SIAM, ARAI, component manufacturers, testing agencies and Oil
Marketing Companies (OMCs).

• Material compatibility, engine calibration, drivability, durability, emissions, fuel systems and
performance were scientifically evaluated before implementation. Manufacturers have
continued to honour vehicle warranties, reflecting their confidence in the compatibility of the
fuel.

• One OEM recently stated that data from 1.4 crore E20-operated vehicles tracked over an
extended period showed no evidence of ethanol-induced corrosion, while ARAI reaffirmed that
E20-compatible vehicles undergo rigorous international-standard validation before reaching
consumers.

• In addition, Oil Marketing Companies maintain strict fuel quality assurance through over 30,000
retail outlet inspections for adulteration and fuel quality verification, supported by directions to
States to maintain zero tolerance towards fuel adulteration. Ethanol-blended petrol conforms to
BIS specifications and undergoes quality checks throughout the supply chain.

• Accordingly, the Government's statement that "no widespread issues" have been reported is
based not on isolated instances but on the cumulative evidence of over 25 years of phased
implementation, extensive scientific validation, continuous field experience across crores of
vehicles, manufacturer service records, stakeholder consultations, and ongoing quality
monitoring.

• The Government examines claims circulated on social media in consultation with manufacturers
and technical agencies. Many such claims have been found to be exaggerated, misleading or
unsupported by technical evidence and no verified evidence of widespread engine damage due
to ethanol blending has emerged.

Claim 2: Nearly 30 crore vehicles will become unusable.

E15+ blended petrol has already been in widespread use for more than three and a half years,
while E19-E20 fuel has been in use for over two and a half years.

During this period:
• More than 20 crore two-wheelers
• More than 3 crore petrol cars have operated on these fuels without any verified evidence of

widespread engine failure or vehicle breakdown attributable to ethanol blending.

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