Amid backlash following its mandate to increase the content of ethanol in petrol from 10 to 20%, the government is now mulling pushing back its plans to launch E25 fuel, a report by The Indian Express has revealed.
After it raised the concentration of ethanol in petrol to 20% from 10% within a span of three years, the government had planned for the dispensation of E25 blended petrol. However, the initial plan was to dispense E20 petrol only by 2030. Currently, the standard blend of ethanol available in the market is E20.
The fears regarding the impending launch peaked in the wake of two moves by the central government: one in which central excise tax was waived for fuel containing 22 to 30% ethanol followed by the Bureau of Indian Standards (BIS) notifying the fuel standards for such mixtures.
Protests in New Delhi
The Narendra Modi-led central government, which enjoys a massive support in places like New Delhi, saw protests by motorists against the E20 ethanol blend on Sunday, with the latter claiming that this fuel is damaging engines as well as rising costs.
The New Delhi protest was the first such significant protest against the 20% ethanol-blended petrol directive by the government.
The Indian government believes that the higher concentration of ethanol in fuel will lead to lesser fuel imports amid tensions in West Asia due to the US-Israel war on Iran.
Motorists are claiming that the Indian govt's push for self-reliance through this is resulting in worse fuel efficiency and higher maintenance costs, which are being borne by the Indian consumer.
“A car is the second-most expensive thing that the middle class buys,” political analyst Tehseen Poonawalla, who led the protests in Delhi, told reporters, as per a Bloomberg report. “The government has imposed E20 fuel on the citizens who have vehicles compatible with E10 fuel, and they are now facing the consequences.”
The IE report reveals that a meeting was held last week at the upper levels of the government, in which it was decided that there is a need to use scientific approach in addressing some of the complaints regarding ethanol-blended fuels.
The report cited sources to reveal that the government has agreed that it needs to give sufficient time for the ecosystem to get ready, and thus they must, for now, avoid pushing for the transition to E25 fuel, given that the E20 transition was not taken well by the Indian consumer.
What industry leaders are saying
“We haven’t seen any glaring issues on social media that warrants a rethink of the government’s biofuel blending program,” said Puneet Anand, associate vice president at Hyundai Motor India, as per a report by Bloomberg.
Rahul Bharti, executive director at Maruti Suzuki India, has claimed that vehicles designed for E20 fuel have been on sale since 2025 and that the fuel is also compatible with the older E10-certified vehicles.
Vikram Gulati, India head at Toyota Kirloskar Motor, said that a case that has gone viral involving a Toyota Innova Hycross allegedly suffering damages by E20 was traced to contaminated fuel rather than ethanol blending. Bloomberg reported.
