India's Biofuel Revolution: Saving Billions Amidst Rising Concerns

Thu Aug 21 2025 12:33:04 GMT+0300 (Eastern European Summer Time)
India's Biofuel Revolution: Saving Billions Amidst Rising Concerns

India's latest push for biofuel blending with petrol has led to significant cost savings and emissions reduction, but also ignites fears among consumers regarding fuel efficiency and food supply.


India's commitment to biofuels has seen it blend 20% ethanol with petrol, achieving a milestone five years ahead of schedule. The initiative has successfully reduced carbon emissions by 69.8 million tonnes and saved the nation 1.36 trillion rupees ($1.5 billion) since 2014. While government officials hail this as revolutionary, many vehicle owners express skepticism over the compatibility of ethanol with existing cars and the potential for diminished fuel efficiency.

Concerns are largely fueled by reports that ethanol can lower mileage and corrode engine parts, posing challenges to older vehicles. Insurance policies compound anxieties as some do not cover damages related to non-compliant fuel types. The federal petroleum ministry has responded by urging drivers to use E20-compatible materials and consider modifications to older vehicles.

While some manufacturers are working to offer retrofit kits to address these issues, consumers remain apprehensive about the potential need for additional expenses. Further complicating matters are the implications for food security, as increased ethanol production requires diverting significant agricultural outputs, including rice and maize, towards fuel production. Experts warn that this shift could exacerbate existing food shortages, particularly affecting vulnerable populations.

Looking ahead, India aims to boost ethanol blending even further, with plans for E25 and beyond. However, the debate around biofuel sustainability and the impact on both producers and consumers is just beginning. In light of these developments, the government faces challenges in balancing its energy ambitions with food security needs.

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