India notifies standards for petrol with up to 30% ethanol amid energy crisis

New Delhi: India has laid the technical groundwork for petrol blended with up to 30% ethanol, signalling the government’s intent to move beyond the ongoing E20 rollout as geopolitical tensions and volatile crude prices sharpen the country’s energy security concerns.

In a notification dated 18 May, the Bureau of Indian Standards (BIS) notified norms for E22, E25, E27 and E30 fuel blends, which refer to petrol blended with 22%, 25%, 27% and 30% ethanol, respectively.

India is currently implementing E20 fuel adoption nationwide, while industry bodies and biofuel manufacturers have increasingly advocated movement towards E22 and higher blends citing surplus ethanol availability and the need to reduce oil import dependence.

The move comes as the country grapples with a crude supply squeeze and volatile prices triggered by the West Asia war, especially the closure of the Strait of Hormuz waterway, through which 20% of the world’s oil supply passes. Such a move would also likely raise the capacity utilization of ethanol from the current 50%.

The standards form part of a fresh specification category for higher ethanol blends beyond E20, and came into effect from 15 May 2026, the notification showed.

R.C. Bhargava, chairman of Maruti Suzuki India Ltd, the largest automobile manufacturer in India, said the company has the capability to comply with the new standards.

“If the government decides to implement it and it becomes a standard requirement for everybody, we will comply. We have the capability to comply with it,” Bhargava said.

What’s new?

The newly notified BIS standards provide the technical specification framework for higher ethanol-blended petrol engines for use in vehicles, and are expected to support the future rollout of flex-fuel and higher blend-compatible vehicles in the country.

The new norms lay down technical requirements for safe use of higher ethanol-blended petrol in vehicles, including percentage of ethanol to be blended with petrol, octane levels, sulphur limits, water content, vapour pressure, corrosion resistance and fuel stability.

The standards are also aimed at ensuring compatibility of the fuel with engines, fuel injection systems and vehicle components as India gradually moves towards flex-fuel and higher ethanol-compatible vehicles.

Ethanol lobby happy

Ethanol lobby group All India Distillers’ Association (AIDA) has welcomed the move. “It’s a progressive and forward-looking step that reinforces the government’s long-term commitment towards higher ethanol adoption, reduced crude oil dependence, and a cleaner mobility ecosystem,” said Vijendra Singh, president of AIDA.

“The introduction of E25 fuel standards will provide interim relief to the industry by helping absorb the current surplus sugar and ethanol production capacities,” he said.

According to data from All India Distillers' Association, India’s ethanol production capacity is about 20 billion litres as of March 2026, while demand under the 20% blending mandate is around 11 billion litres.