The Centre has raised the proportion of ethanol blending in petrol to as high as 30 per cent, beyond the current limit of 20 per cent.
The Bureau of Indian Standards (BIS) on Monday issued specifications for E22, E25, E27 and E30 fuels, establishing a regulatory framework for the next phase of the country’s biofuel strategy.
The newly notified grades refer to petrol mixed with 22 percent, 25 percent, 27 percent and 30 percent ethanol. BIS stated that the standards apply to fuel blends prepared using motor gasoline and anhydrous ethanol — ethanol free from moisture — intended for use in positive ignition engine-powered vehicles.
The move signals the Centre’s intent to accelerate India’s transition towards alternative fuels at a time when global energy markets remain volatile due to the West Asia war.
Rising geopolitical tensions and fluctuations in crude oil prices have intensified concerns around India’s dependence on imported petroleum products. By increasing the share of domestically produced ethanol in transport fuel, policymakers aim to reduce exposure to external supply disruptions and strengthen long-term energy security.
Ethanol-based fuels are considered cleaner alternatives to conventional petrol and can contribute to lowering vehicular emissions over time.
From 2023, the Centre gradually introduced E20 petrol in different parts of India, replacing earlier blends such as E5 and E10, which were regarded as more compatible with older vehicles.
India has nearly 24 crore two-wheelers and 4 crore cars designed for lower ethanol blends, raising concerns among automakers and owners over the impact of higher ethanol-mixed fuel on engine performance, mileage and long-term reliability, reported Live Mint.
Many vehicle owners also questioned the cost-effectiveness of ethanol-blended petrol amid recent fuel price hikes, with some considering a shift to electric vehicles or waiting for E20-E30 compatible models.
The ethanol industry has welcomed the government’s decision, viewing it as a major boost for domestic production capacity. Industry representatives believe that expanding blending limits beyond E20 will help absorb surplus ethanol output and encourage fresh investment in the sector. Members of the industry vied for a push to a standard as high as E85.
Vijendra Singh, president, All India Distillers' Association, said to NDTV, "While this is an important milestone, the long-term vision should now move decisively towards higher blends such as E85 and E100. Considering the new capacities being created across the sector, the future of India's ethanol programme will increasingly depend on the growth of flex-fuel mobility and a supportive ecosystem for higher ethanol usage."
According to industry estimates, India’s ethanol production capacity currently stands at nearly 2 billion litres. Procurement by oil marketing companies has remained significantly lower, at roughly half that volume.