The Indian adoption of ethanol blends reached 20% but failed to produce the expected reduction in petrol prices. The price of ethanol at ₹57.97 per litre remains lower than petrol yet most Indian cities maintain petrol prices above ₹100 per litre. The theoretical price reduction of petrol by ₹8 per litre from a 20% ethanol blend has not reached Indian consumers.
The lower energy density of ethanol results in reduced vehicle range which increases the expense of traveling per kilometer for petrol car owners. The combustion speed of ethanol exceeds that of petrol and causes engine damage to vehicles that operate with lower ethanol blends. Vehicles manufactured before April 2023 operate on E10 fuel standards but cannot handle E20 blends which results in engine knocking and fuel leakage and decreased engine performance. The pre-2020 vehicles which cannot use ethanol face the most severe risks.
The Ethanol Blending Programme decreases crude oil dependence while supporting domestic farming yet its advantages stop at macroeconomic cost reductions. The central government plans to reach 27–30% ethanol blending by 2030 yet Indian drivers currently spend more on operating their vehicles even though ethanol prices are lower which proves the ethanol blend has failed to achieve its projected effect on lowering consumer petrol prices.
