By Kavita Mistry 
India’s ethanol blending journey reached an important milestone with assurances from SIAM (Society of Indian Automobile Manufacturers) and ARAI (Automotive Research Association of India). At a recent press conference in New Delhi, officials clarified that automakers will continue to honor warranties and insurance terms even if customers use E20 fuel, or petrol blended with 20% ethanol.
No Warranty or Insurance Impact
Some automakers had earlier advised customers against using E20, raising concerns among vehicle owners. However, SIAM and ARAI have confirmed that using E20 will not void warranties or alter insurance conditions. Automakers have committed to addressing customer concerns, with Maruti Suzuki stating that no ethanol-related issues have been reported across its service network so far.
Addressing Fuel Efficiency Concerns
A key consumer complaint about ethanol blending is the noticeable drop in fuel efficiency. Officials acknowledged this and assured that ARAI is working to address efficiency losses. The move aims to balance environmental goals with consumer satisfaction, ensuring smoother adoption of ethanol-blended fuels across the country.
Roadmap Until 2026
The Indian Oil Corporation (IOC) stated that the current E20 roadmap will remain valid until October 2026. Decisions beyond that will depend on detailed technical and environmental studies, alongside consultations with automakers, policymakers, and research bodies. This phased approach reflects the need to monitor both performance and long-term sustainability.
Benefits of Ethanol Blending
Beyond technical concerns, ethanol blending has brought major economic and social benefits. Farmers are now positioned as energy providers, with payments to them reaching ₹40,000 crore in 2025. The programme has eliminated sugarcane arrears, boosted maize farming, and contributed to rural prosperity by reducing distress and farmer suicides. Since 2014–15, India has substituted 245 LMT of crude oil, saving ₹1.44 lakh crore in foreign exchange.
Why Prices Remain the Same
Despite higher procurement costs—since ethanol prices are set to benefit farmers—the oil industry has kept petrol prices unchanged. The savings from reduced crude imports are being redirected to cover refining, transport, and subsidy costs, keeping fuel prices politically and economically stable.