New Delhi, Aug. 12 -- The government on Tuesday sought to allay concerns over the 20% ethanol-blended petrol (E20) hurting mileage and damaging vehicle engines, saying that the fuel in fact gave better acceleration and improved ride quality.

In a statement, the Union ministry of petroleum and natural gas said that vehicle owners do not find any issue related to drivability, metal compatibility and plastic compatibility while using E20 petrol.

The ministry also rejected suggestions that E20 causes a "drastic" reduction in fuel efficiency as "misplaced".

"The use of E20 gives better acceleration, better ride quality and most importantly, lowered carbon emissions by approximately 30% as compared to E10 fuel. Ethanol's higher-octane number...