Amid the ongoing debate on ethanol blending, Petroleum and Natural Gas Minister Hardeep Singh Puri has given an important statement. He said that ethanol is being used successfully in racing cars and it helps in increasing the speed and performance of the vehicles. He said that the biofuel policy of the government has been made keeping in mind energy security, farmers’ income and environmental protection.
**Ethanol is proving successful in racing cars**
Hardeep Singh Puri said that the use of ethanol in racing cars is giving good results. According to him, this biofuel is proving helpful in increasing the efficiency of the engine and improving the overall performance. The minister said the government is moving forward on a policy for higher levels of biofuel blending. He said that due to the ongoing conflict in the Middle East, there has been a lot of fluctuation in the prices of crude oil in the international market. This has had a direct impact on the government oil companies, due to which they have to bear a heavy financial burden.
**What did the minister say about mileage?**
Hardeep Singh Puri admitted that in some cases ethanol blending may reduce the mileage of the vehicle slightly, but he also said that there could be many other reasons for this. He said that there is a lot of scope in the market for both electric vehicles and vehicles running on biofuel.
**What is the government’s plan to move beyond E20?**
The minister made it clear that India will move ahead with E20 only when adequate testing and technical evaluation is completed. The government will not move forward without complete preparation. According to the Petroleum Ministry, E10 is used extensively in the US, while the adoption of E15 is also increasing rapidly; Additionally, millions of flex-fuel vehicles are running on E85. Brazil has mandated E27 and is working toward 100 percent ethanol use. Canada, Thailand, Japan and several European countries have also adopted higher ethanol blends. The ministry says that India’s E20 program is a step in this global direction.
**Why is ethanol considered a better option?**
According to the ministry, ethanol has an octane rating of around 108 RON, making it ideal for high-performance engines. This reduces engine knock, increases power and improves cooling.
**Continuous increase in ethanol production**
India’s Ethanol Blended Petrol (EBP) program has been running since the 2000s. The country’s ethanol production capacity has increased from 380 million liters per annum in 2013-14 to 2,000 million liters per annum today. The level of ethanol blending has also increased from 1.5 percent to 20 percent by December 2025.
**Government emphasizes key benefits**
According to the Petroleum Ministry, the ethanol blending program has yielded significant benefits since 2014-15. This initiative has resulted in saving of foreign exchange worth more than ₹1.90 lakh crore. A total of more than ₹1.60 lakh crore has been paid to farmers. Crude oil imports have reduced by approximately 310 lakh metric tonnes and carbon dioxide (CO₂) emissions have reduced by approximately 930 lakh metric tonnes. The Minister said that this program plays an important role in strengthening the energy security of the country, increasing the income of farmers and protecting the environment.
**Heavy burden on oil companies**
Hardeep Singh Puri said that due to the ongoing conflict in the Middle East, the prices of crude oil have increased, which has put huge financial pressure on the government oil companies. As of June 30, these companies have incurred a loss of ₹74,781 crore due to selling petrol, diesel and LPG below cost. The total ‘under-recovery’ (difference between cost and selling price) on this fuel during the April-June 2026 quarter has reached ₹1.88 lakh crore, he said.
**Will prices go down?**
On the possibility of reduction in retail fuel prices, the minister said it would be premature to comment on the matter at this stage. He said that if the prices of crude oil in the international market remain low for the next two-three months, the government will consider the situation further.