Nearly six in 10 owners of petrol vehicles purchased in 2023-24 have reported that their vehicles are delivering more than 10% lower fuel efficiency since early 2025, prompting LocalCircles to call for an investigation into possible
petrol adulteration or contamination in the fuel supply chain.
The findings are based on a LocalCircles survey of more than 22,000 owners of petrol vehicles purchased during 2023 and 2024 across 277 districts. According to the report, 59% of respondents said their vehicles' mileage had decreased by more than 10%, while one in four reported a decline of more than 20%.
The community platform argued that such a sharp decline in fuel efficiency cannot be explained solely by the use of E20 petrol, which contains 20% ethanol. It noted that the ministry of petroleum and natural gas has estimated the impact of E20 fuel on mileage at about 3-5%, while other studies have suggested losses of 1%-6% under controlled conditions.
According to the report, the survey raises questions about fuel quality because the vehicles covered are among the newest on Indian roads and were designed to operate on higher ethanol blends. LocalCircles said the scale of the reported mileage loss points to the possibility of adulteration or contamination somewhere in the fuel supply chain rather than normal vehicle ageing.
The report also compared the responses with those from owners of petrol vehicles manufactured before 2023. It said 66% of owners of older petrol vehicles had also reported mileage losses exceeding 10%, suggesting the issue cuts across vehicle categories and may not be linked to age or design.
Among owners of 2023-24 petrol vehicles, 25% reported a mileage decline of more than 20%, 16% reported a drop of 15%-20%, and 18% said mileage had fallen by 10%-15%. Another 5% experienced a 5%-10% reduction, while 8% reported a marginal decline of 1%-2%. Only 18% of respondents reported no change in fuel efficiency, while 10% were unable to assess the impact.
The report comes amid an ongoing debate over the impact of ethanol-blended petrol. India rolled out E20 petrol nationwide from April 2025, several years ahead of its original target. Since then, motorists have raised concerns over reduced mileage and performance, while the government has maintained that the fuel blend causes only a limited reduction in efficiency and has rejected claims of widespread engine damage. At the same time, the Centre has directed states to take strict action against fuel adulteration and maintain quality standards in the ethanol-blended fuel supply chain.
LocalCircles said there could be economic incentives for excessive ethanol blending because ethanol supplied under the government's blending programme is priced significantly below retail petrol. Since ethanol contains less energy per litre than petrol, blending beyond prescribed levels could reduce vehicle mileage while remaining difficult to detect through conventional fuel quality checks conducted at retail outlets, the report said.
The report noted that existing field tests commonly used to detect kerosene or solvent adulteration are not designed to identify excess ethanol. It called for routine testing of ethanol concentration at fuel stations using methods prescribed under Indian standards, along with laboratory analysis wherever necessary.
LocalCircles also urged oil marketing companies to publish data on ethanol blend conformity from retail fuel samples and reconcile ethanol movement with actual blending volumes to identify any over-blending or diversion. The organisation said it would submit the survey findings to the ministry of petroleum and natural gas and other authorities, seeking a detailed investigation into fuel quality before any conclusions are drawn on the impact of E20 petrol on vehicle performance.
The survey covered respondents from 277 districts across the country, with 42% from tier-1 cities, 30% from tier-2 locations and the remaining 28% from tier-3, tier-4, tier-5 and rural districts. According to LocalCircles, all participants were registered users on its platform.
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