The E20 Conundrum

The government's decision to aggressively push for ethanol-blended fuel has put car owners in a dilemma

- By MANU BALACHANDRAN

FOR A FEW MONTHS NOW, India's car owners have been in a bit of a dilemma.

While the latest revision in the Goods & Services Tax (GST) has caused some mayhem in the market for good, much of the recent conundrum stems from the government's decision to aggressively push for ethanol blended fuel as part of its focus on clean energy.

In 2021, India set a target to introduce 20 percent ethanol-blended fuel, called E20, by 2025. That move, many car owners have claimed, causes compatibility issues for vehicles made before 2020, leading to a public interest petition being filed in the Supreme Court. The top court, however, dismissed the plea.

Currently, E20 is the only choice of fuel at nearly 90,000 fuel stations across India, and car owners have repeatedly cited that its use has led to a reduction in fuel efficiency and performance. Automakers have sought to allay fears.