"They Are Using Ethanol In Racing Cars": Oil Minister Hardeep Puri

Petroleum Minister Hardeep Singh Puri today said that ethanol is being used in racing cars and that the biofuel helps them accelerate. Puri defended the government's push towards greater biofuel blending while addressing the heavy financial toll on oil marketing companies amid recent global crude price volatility triggered by the Middle East crisis.

"Somebody is saying that fuel mileage is going to drop. It is now well established that ethanol is even used in racing cars. Acceleration improves. What is that called? Knocking? Knocking also improves. Mileage? Yes, it may drop a little. But it may drop slightly due to various factors," Puri said. 

"Secondly, after consulting all stakeholders, including SIAM and ARAI, we have reached this stage. Then someone says, 'Your insurance will no longer cover this'. Insurance companies have already clarified that there is no such issue. But who benefits from spreading this false narrative? I am not going to make any accusations, but one thing should be very clear. There is enough space in India's growing consumer market for all technologies to coexist. There is room for electric vehicles, biofuel-blended vehicles, and we are currently only at 20 per cent ethanol blending. If we move from 20 per cent to 25 per cent, it will happen only after all the necessary tests have been completed. There is also enough space for hybrid vehicles and CNG vehicles," he added. 

Puri said that mileage may drop a little with higher ethanol blends, but cautioned that "that could be because of many things."

"There is enough space for E-Vehicles, Bio-Fuel Mixed Vehicles etc," he said. India would look to move beyond the current E-20 fuel blend only "after enough number of tests have been conducted," he added.

The minister's comments came as state-owned oil marketing companies grapple with substantial losses. Oil companies suffered Rs 74,781 crore losses for selling petrol, diesel and LPG below cost for the period up to June 30, when global crude oil prices spiked in the wake of the Middle East conflict, Puri said.

The total under-recoveries on petrol, diesel and LPG reached Rs 1,88,871 crores during the April-June 2026 period.International crude oil prices have since moderated, yet companies are still processing stocks purchased at the height of the crisis. 

"We are using the crude petroleum stock today that we had bought two months ago (at a price that existed two months ago)," the minister explained. 

Asked about potential cuts in retail fuel prices, Puri described the prospect as hypothetical for now. 

"If this (decline) continues for 2-3 months, we will see. But it is a hypothetical situation," he said.

According to the Ministry of Petroleum and Natural Gas, the United States uses E10, with E15 expanding and millions of flex-fuel vehicles running on up to E85. Brazil leads with E27 mandates and plans for higher blends, while many new vehicles there are flex-fuel capable of handling up to 100 per cent ethanol. 

Canada, Thailand, Japan, and several European nations have also embraced it. India's E20 programme sits comfortably within this international mainstream. Ethanol's high octane rating -- around 108 RON -- makes it particularly prized in high-performance engines, delivering superior anti-knock properties, power, and a cooling effect that enhances efficiency in turbocharged and high-compression motors.

India's Ethanol Blended Petrol (EBP) programme traces its roots to the early 2000s, with initial 5 per cent blending pilots, the Petroleum ministry states. 

Production capacity has surged from about 38 crore litres in 2013-14 to 2,000 crore litres per annum. Blending levels rose from a meagre 1.5 per cent to 20 per cent, achieved in December 2025. Since 2014-15, the programme has delivered foreign exchange savings exceeding Rs. 1.90 lakh crore, payments to farmers surpassing Rs. 1.60 lakh crore, crude oil substitution of over 310 lakh metric tonnes, and CO₂ emissions reduction of approximately 930 lakh metric tonnes.