'Ethanol Is Used In Racing Cars': Oil Minister Defends Govt's Biofuel Blending Programme

Last Updated:July 02, 2026, 23:45 IST

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, NDTV reported.

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.

“There is enough space for E-Vehicles, Bio-Fuel Mixed Vehicles etc," he said, according to NDTV.

The minister added that India would consider moving beyond the current E20 fuel blend only “after enough number of tests have been conducted."

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.

Also Read: E20 Row In Supreme Court: Centre Seeks Unified Verdict To Keep Ethanol Rollout On Track

“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.

It maintained that implementation of the ethanol blending programme would continue “in a safe, transparent and consumer-centric manner, guided by scientific evidence and continuous stakeholder engagement."

The clarification comes amid complaints from some motorists who have alleged reduced mileage, performance issues and engine wear with higher ethanol blends.

The government has rejected these concerns, saying they are not backed by verified statistical data, and has maintained that E20 fuel offers better acceleration, smoother ride quality and nearly 30 per cent lower carbon emissions than E10.

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