50% of Owners of Older Petrol Vehicles Want Return of E0/E10 Fuel; Many Report ₹5,000-₹25,000 Extra Costs after E20 Rollout: LocalCircles

Moneylife Digital Team 05 June 2026

Consumer Interest

More than half of owners of petrol vehicles purchased in 2022 or earlier want the option to switch back to lower-ethanol petrol blends, with many reporting higher fuel expenses and increased repair costs since the nationwide rollout of E20 petrol, according to a new survey by LocalCircles.

The survey, which gathered responses from more than 42,000 owners of older petrol vehicles across 316 districts, found that 55% would prefer to switch to E0 or E10 petrol if those fuel grades were made available again. The findings come amid continuing debate over the impact of higher ethanol-blended fuel on vehicles originally designed for lower ethanol content.

India achieved its target of 20% ethanol blending in petrol nationwide in 2025, six years ahead of the original 2030 deadline. The government has since moved ahead with plans for even higher ethanol blends, with the Bureau of Indian Standards (BIS) notifying IS 19850:2026 standards covering E22 to E30 fuel blends in May this year.

At the same time, the Union ministry of petroleum and natural gas (MoPNG) has mandated that all E20 petrol sold from 1 April 2026 must meet a minimum research octane number (RON) of 95.

However, many owners of older vehicles claim the transition has resulted in lower fuel efficiency and higher maintenance costs.

According to LocalCircles, an earlier survey involving more than 50,000 owners of petrol vehicles purchased in 2022 or earlier found that one in two respondents had experienced reduced mileage after the E20 rollout, while nearly three in 10 reported unusual wear and tear or increased repairs involving components such as engines, fuel lines, fuel tanks and carburettors.

The latest survey sought to quantify the financial impact of these issues.

When respondents were asked how much additional expenditure they had incurred since early 2025 because of reduced mileage and higher repair costs, 52% reported spending between ₹5,000 and ₹25,000 or more.

Of the 20,587 respondents who answered the question, 20% said they had incurred additional costs of ₹5,000-₹10,000, while 17% reported expenses of ₹10,000-₹15,000. Another 6% said their expenditure was between ₹15,000 and ₹25,000, while 9% indicated spending more than ₹25,000.

Only 11% reported no additional expenditure, while 25% did not provide a clear answer.

LocalCircles said the findings suggest that the real-world impact of E20 petrol on older vehicles may be significantly higher than official estimates.

The Automotive Research Association of India (ARAI) has previously estimated that ethanol blending could reduce fuel efficiency by around 1%-6%, depending on the vehicle and operating conditions.

The government, however, has consistently defended the ethanol-blending programme, arguing that it strengthens India's energy security, reduces dependence on imported crude oil and supports domestic sugarcane farmers.

Union petroleum minister Hardeep Singh Puri has maintained that ethanol-blended fuel has minimal impact on vehicle performance.

In September 2025, the Supreme Court dismissed a public interest litigation seeking the continued availability of ethanol-free petrol, ruling that individual consumer preference could not override broader national energy policy objectives.

However, a fresh petition has reportedly sought the availability of E0 petrol and clearer labelling of fuel grades at petrol pumps, citing concerns about reduced mileage and engine damage in older vehicles.

The LocalCircles survey also found strong demand for alternatives to E20 fuel.

When asked what they would do if E0 or E10 petrol became available again, 31% of respondents said they would switch immediately, even if it cost more. Another 24% said they would switch if the price was similar to E20.

Only 12% indicated they would continue using E20 exclusively, while 23% said they needed more information before making a decision.

Taken together, the responses suggest that a majority of owners of older petrol vehicles would prefer access to lower-ethanol fuel options.

LocalCircles argued that the findings highlight the need for policymakers to balance environmental and energy-security objectives with consumer costs and vehicle compatibility concerns.

The organisation said many respondents reported both higher operating expenses and unusual wear and tear, raising concerns that some older vehicles could become unroadworthy earlier than the 15-year operational life permitted for petrol vehicles in many jurisdictions.

It also called for greater consumer choice by ensuring that E0 or E10 petrol is available alongside E20 at fuel stations.

The survey findings are likely to add to the ongoing debate over the future of India's ethanol-blending programme as the government prepares for higher ethanol concentrations in petrol while consumers continue to assess the long-term impact on vehicle performance and ownership costs.

Comments

User

m.muralidharan

2 months ago

Moneylife should take this up vociferously with Govt., and even Courts (even though they declined earlier) properly showcasing the destruction to the millions of existing vehicles and the cost of running them. MoneyLife successfully fought many battles and won, earlier. They should take this up as it is an important issue for Indians.