The Indian Express published a detailed opinion piece arguing that India’s current fuel-price disclosures are incomplete because they still show the pricing as if petrol were 100% fossil fuel, even though almost all petrol sold today is blended with 20% ethanol. Without separate published cost breakdowns for ketchup-style E20 fuel — including ethanol procurement, GST, transport, and how taxes are applied — consumers can’t see how much they’re paying for each component. This “missing 20%” issue fuels calls for clearer public pricing transparency rather than treating blended fuel as if it were pure petrol.
Ethanol is taxed under GST (5%), while petrol remains outside GST and is instead taxed via central excise + state VAT.
Oil companies pay GST on ethanol but cannot offset it with input credits, making the blended fuel’s cost structure opaque to the public. Despite ethanol being cheaper in theory, the blended fuel still sells at full petrol price with no clear breakdown of costs passed to consumers — driving demands for transparency.
Many vehicle owners complain about lower fuel economy and engine issues, especially in cars not originally designed for E20, contributing to public unease. The Ministry of Petroleum insists claims of drastic mileage loss or insurance problems are “false narratives” and that E20 offers environmental and performance benefits, including improved acceleration and reduced emissions.
Industry bodies say E20 is compatible with many modern engines and beneficial for reducing crude imports. Supporters highlight that higher ethanol blending helps reduce India’s oil import bill and supports farmers/ethanol producers, noting potential forex savings.
Earlier reports show many vehicle owners are skeptical or opposed to the E20 mandate, with ongoing consumer dissatisfaction especially where performance or clarity is lacking. With 20% ethanol now a regular part of retail petrol, demands for full fuel price transparency are growing louder — so consumers can understand how blended fuel pricing, taxation, and energy content affect them.
The debate cuts across economic, fiscal, environmental, and consumer rights concerns, and is shaping public discussion as India scales up biofuel policies.
