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E20 fuel may reduce some vehicle efficiency by 3-5%, but offers benefits like cleaner engines and lower carbon emissions, following extensive testing and manufacturer consultation.
It was brought down to Rs 9,500 per tonne from Rs 11,000, effective November 2, a notification said.
India, which imports more than 80 percent of its oil imports, has been under pressure as crude oil prices have surged and its rupee currency has lost value.
India imports 80 per cent of its oil needs.
"We have to fulfil our own domestic requirements," said petroleum minister.
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