What lies beyond India’s E20 push, Pg8

Key Highlights:

• E20 petrol, a blend of 80% motor gasoline and 20% anhydrous ethanol, was first introduced in India on February 6, 2023, by public sector Oil Marketing Companies (OMCs) at select outlets.
• The government promotes E20 for consumer savings, reduced carbon emissions, and foreign exchange savings.
• A joint study by ARAI–SIAM–IOCL indicated a 2% to 6% reduction in fuel economy with E20, depending on vehicle category and vintage.
• This mileage loss has led to an estimated additional expenditure of ₹88,234 crore for Indian consumers over the last three years.
• Diversion of crops like sugarcane and maize for ethanol production has resulted in India banning sugar exports and becoming a net maize importer, impacting agricultural export earnings and raising food security concerns.

Detailed Insights:

• The scaling up of E20 was primarily driven by rising crude oil prices, aiming to reduce India's reliance on imported oil.
• The loss in mileage means vehicles consume more fuel for the same distance, potentially negating the claimed cost savings for consumers.
• Emissions per kilometer could increase if the mileage loss is between 4% and 6%, despite ethanol being a cleaner-burning fuel.
• Older vehicles, particularly those manufactured before 2022, are more susceptible to mileage reduction and anecdotal engine damage.
• The Ethanol Blending Programme (EBP), launched in 2003, aimed for 5% blending and has gradually scaled up, with the 20% target advanced to 2025-26.
• India banned sugar exports in 2023 and again this year due to increased diversion of sugarcane for ethanol production.
• The country transitioned from a maize exporter to a net importer, with significant quantities diverted for ethanol, impacting the poultry and animal feed industries.
• Experts suggest providing consumers with a choice between E10 and E20 and investing in robust public transport infrastructure.

Key Concepts Involved:

• E20: A motor fuel containing 20% anhydrous ethanol and 80% gasoline.
• Ethanol Blending Programme (EBP): A government initiative to mix ethanol with petrol to reduce crude oil imports and emissions.
• Oil Marketing Companies (OMCs): Public sector enterprises responsible for the procurement, refining, and marketing of petroleum products.
• ARAI: The Automotive Research Association of India, a leading cooperative industrial research association by the automotive industry.
• SIAM: The Society of Indian Automobile Manufacturers, an apex body representing the Indian automobile industry.
• IOCL: Indian Oil Corporation Limited, a major public sector undertaking involved in petroleum and natural gas.