The Central government has ruled out offering pure petrol, E10 and E20 simultaneously across India, saying maintaining multiple petrol grades would increase costs and create significant logistical challenges. In a question-and-answer note issued on July 10, the Ministry of Petroleum and Natural Gas reiterated that E20 will continue as the country’s standard petrol blend.

1. Government cites investments made in ethanol production infrastructure
2. Separate fuel grades would require parallel storage and distribution
3. E20 to remain the standard petrol blend across India

Government cites distribution challenges

The ministry said India’s fuel distribution network comprises more than one lakh retail outlets, supported by refineries, terminals, depots, pipelines and storage facilities. Maintaining three different petrol grades across this network would require separate storage, inventory management and distribution infrastructure, increasing handling costs and reducing operational efficiency.

The government also rejected comparisons with premium petrol, saying it is a niche product sold in relatively small volumes and does not require a separate nationwide fuel supply chain.

Investments in ethanol infrastructure

The ministry said substantial investments have been made in ethanol production, including distilleries, storage facilities and logistics infrastructure, to support India’s ethanol blending programme. It added that reverting to E10 as the standard petrol blend could leave ethanol production capacity underutilized and affect investments made by farmers, cooperatives, companies and financial institutions.

According to the ministry, India achieved an average 20 percent ethanol blending between November 2025 and June 2026, compared with 19.2 percent during the previous ethanol supply year.

What it means for older vehicles

The question of offering multiple petrol grades has been raised by owners of older vehicles originally certified to run on E10 petrol. The ministry said vehicle manufacturers, component suppliers, testing agencies and research institutions were consulted before the introduction of E20, covering areas such as material compatibility, engine calibration, fuel systems, durability, emissions and fuel economy.

To support its position, the ministry cited field data from Maruti Suzuki and Hero MotoCorp. It said Maruti Suzuki serviced 2.84 crore vehicles during FY2025-26, including 1.5 crore older vehicles that were not originally certified for E20, and reported no E20-related corrosion, abnormal wear or component-life damage. Hero MotoCorp also reported similar field experience.

The ministry acknowledged that some vehicles may record a 3-5 percent reduction in fuel economy when running on E20. However, it said this should be weighed against the fuel’s higher octane rating, as well as the benefits of lower crude oil imports and reduced emissions.

These are claims made by the Petroleum Ministry in support of the E20 programme. The release does not provide an independent comparison of the additional cost of maintaining multiple fuel grades against the benefit of allowing consumers to select fuel based on their vehicle’s original certification.