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Sugaronline India Report – Too many headwinds may hamper India’s ethanol push

By Ritesh Kumar Singh

30th December 2024

Higher blending (E20) reduces fuel efficiency by 5%-7% and raises the overall cost of vehicle ownership, further dampening vehicle demand amidst a worsening consumption slowdown. This will slow adoption of cleaner bio-fuel unless New Delhi is willing to compensate vehicle owners.

Studies show that carbon monoxide emissions can be reduced by up to 50% in two-wheelers and 30% in four-wheelers with 20% ethanol-blended petrol (E20). Ethanol’s higher octane rating compared to petrol allows for higher engine compression ratios, enhancing engine performance. However, E20 ethanol-blended petrol does not fully offset the lower fuel efficiency of ethanol, which

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