Why is Brazil at the center of India's ethanol fuel rollout? Here's what we know

As India accelerates the introduction of E20 gasoline, comparisons with Brazil, where ethanol has fueled vehicles for decades, have become central to the ethanol fuel debate.

According to a Hindustan Times report, Petroleum and Natural Gas Minister Hardeep Singh Puri last year pointed to Brazil’s long-term use of E27 gasoline, a blend containing 27% ethanol, and said the country was not reporting engine-related problems because of it. Road Transport and Highways Minister Nitin Gadkari also cited Brazil’s success, noting that the country adopted E100 ethanol fuel years ago.

Read also | Admitting that E20 fuel affects the car’s mileage, Gadkari dismisses concerns about engine damage

According to reports, while politicians often cite Rio de Janeiro’s ethanol blending model to support New Delhi’s adoption, critics have argued that India’s agricultural realities, energy needs and environmental challenges make it difficult to replicate Brazil’s playbook.

Why is Brazil at the center of the debate?

According to the Hindustan Times, Brazil turned to ethanol as early as 1973 when the country faced an oil crisis triggered by Arab oil producers embargoing the US and its allies over the Yom Kippur War, highlighting the South American country’s dependence on imported oil.

Brazil, long the world’s largest sugarcane grower, already had the raw materials and much of the infrastructure. The country has been growing sugar cane since 1532. Moreover, ethanol as a fuel was also not new, the first ethanol factory was opened in 1927 in Alagoas. By 1929, roughly 500 cars were driving it in the northeast of the country.

According to Bloomberg, Brazil first mandated the blending of 5 percent ethanol in gasoline in 1931. The blending requirement was temporarily increased to 50 percent during World War II due to oil supply disruptions. However, the country’s main push for ethanol began in 1975 with the launch of the National Alcohol Program, or Pro-Alcool, at a time when low sugar prices and excess distilling capacity made the initiative economically viable.

In 1979, Rio de Janeiro introduced the Fiat 147, the world’s first mass-produced car that runs exclusively on pure ethanol. Within six years, roughly 75 percent of cars would be able to handle fuel with ethanol added to it.

How does the Brazilian system differ from the Indian system?

According to reports, Brazil follows a different fuel sales model than India. Motorists can choose between gasoline with an admixture of approximately 27% ethanol (E27) and ethanol containing water (E100). Prices often favored ethanol, and reports indicated that it typically sold at prices 25-35% lower than blended gasoline, making it an attractive choice for consumers.

Unlike Rio de Janeiro, however, motorists in New Delhi do not have a choice of multiple ethanol blends at gas stations.

The center’s position on the introduction of E20

A massive debate ensued following the adoption of E20 in India, with motorists reporting a drop in mileage on their vehicles and corrosion of engine parts since the switch.

The debate also drew reactions from political leaders, including Karnataka Congress chief BK Hariprasad and Aam Aadmi Party (AAP) convener Arvind Kejriwal, who accused the Center of forcing an “experiment” on drivers who never wanted it.

Defending the nationwide adoption of E20 fuel, Puri said ethanol-laced fuel is already widely used without causing technical problems. He added: “There are 20 million two-wheelers and 20 million four-wheelers on the road using this fuel. The car manufacturers, as well as the people who operate these vehicles, all say it is not a problem,” Moneycontrol reported.

He went on to say: “We’ve been on E20 (a mixture of 20% ethanol and 80% petrol) since April last year. From April 2025 to April 2026 it’s already been one year and now we’re another five months behind it.”

He questioned the sudden interest in the ethanol-blended fuel program, saying New Delhi has been using E15 (a blend of 15% ethanol and 85% gasoline) for the past two to three years.

Gadkari rejected criticism that E20 petrol damages vehicles and urged critics to back up the claim with evidence. He said: “There is no instance of any car having problems with E20 petrol. Has there been any car in the country that has had problems with E20 petrol? Just name one.”

As the debate over the adoption of ethanol-laced fuel continues, the center insists that any further decision to switch to E25 and higher ethanol blends will be based on scientific testing and consultation with automakers.