Fuel fight brews as ethanol lobby wants blend boost

Pune | New Delhi: Even as the automobile industry continues to push back against the government’s 20% ethanol blending mandate-citing reduced fuel efficiency-the ethanol lobby is urging a further increase of 1-2%, within what it calls the “tolerance level” of existing vehicles.

The Grain Ethanol Manufacturers’ Association (GEMA) has made the demand, arguing that more than half of the industry’s installed capacity remains idle.

“The grain-based ethanol industry is struggling, with only about 50% of our total capacity being utilised. Raising the blend by just 2% can help us achieve breakeven,” said CK Jain, president of GEMA.