Ethanol Fuel India: What are the owners of old petrol vehicles demanding regarding E20 petrol? What impact was seen on vehicle owners due to E20 petrol in LocalCircles' survey? What are flex-fuel vehicles and how are they different from normal petrol vehicles?
Flex Fuel CarsOn one hand, Maruti Suzuki has recently launched its flex-fuel car and the government is also fully prepared to take the country towards 100% ethanol fuel. But the owners of old vehicles are not very happy with this change. He says that since the introduction of E20 petrol, the cost of maintenance and petrol of vehicles has increased. Therefore, they want to get the option to fill petrol without ethanol (E0) or with only 10% ethanol (E10) like before.
This has come to light in a survey by LocalCircles. According to the survey, more than half of the people using petrol vehicles before 2023 want to be given the option of E0 or E10 petrol. Many people say that their expenses have increased since the implementation of E20 fuel across the country.
What are flex-fuel vehicles?
Flex-fuel vehicles are vehicles that can run on gasoline mixed with varying amounts of ethanol, even 100% ethanol (E100). Their engines and parts are specially designed to handle high levels of ethanol. This improves engine performance and also reduces pollution. The role of these vehicles can be very important in taking India from traditional petrol to environment-friendly fuel. Also, when such vehicles increase, the demand for ethanol producing crops will also increase, which will greatly benefit the farmers of the country.
Expenses increase, double blow to car owners
Most owners of pre-2023 vehicles believe that the cost of running their vehicles will increase once the use of E20 petrol starts from the beginning of 2025. This survey was conducted among more than 42,000 old petrol vehicle owners in 316 districts of India.
The survey revealed that 52% people had to bear additional expenses of Rs 5,000 or more due to reduction in mileage and increase in maintenance. Expenses of 20% car owners increased by Rs 5,000 to Rs 10,000. Whereas, 17% people had to spend Rs 10,000 to Rs 15,000 more. Expenses of 15% people increased by more than Rs 15,000, while only 11% people did not have to spend any extra.
On the other hand, Grain Ethanol Manufacturers Association says that ethanol blending is a great way for India to reduce petrol imports. Due to this, the price of petrol can be reduced by Rs 20 per liter.
brazilian model
There are two nozzles on petrol pumps in Brazil. One for base petrol (like E20 in India today) and the other for E85 or E100 fuel. If this method is adopted in India also and a vehicle runs completely on ethanol (E100), then Value Added Tax (VAT) will not be applicable on it. This is because E100 does not contain 70% fossil fuel hydrocarbons, so it will be exempt from VAT. Currently, state governments charge around Rs 18 to Rs 20 VAT on Rs 100 petrol. With the removal of this tax, the price may change by up to Rs 20 per litre.
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