Petrol blended with up to 30% ethanol notified; compatibility, costs concern car owners

The Indian government has paved the way for blending ethanol in petrol beyond the current proportion of 20%. The Bureau of Indian Standards (BIS) on 18 May notified norms for E22, E25, E27 and E30 fuel blends, which refer to petrol blended with 22%, 25%, 27% and 30% ethanol, respectively.

The move comes at a critical time for India for reasons detailed below.

In its notification, BIS laid down specifications for fuel blends made by mixing motor gasoline with anhydrous ethanol, or ethanol which is completely free from moisture, for use in “positive ignition engine-powered vehicles”.

The move seems to be a positive step to address the energy security worries currently facing India as well as the biofuel's long-term impact in reducing air pollution.

However, compliance with vehicles and the effect of the current E20 (and henceforth higher) blend on engine life and mileage have remained hotly debated.

Compatibility concerns

According to a report in Business Standard, India has roughly 24 crore two-wheelers and 4 crore cars on the road that were originally designed for lower ethanol blends.

Naturally, car makers and car owners are worried about how these vehicles will run on ethanol blends higher than the current E20 mandate.

Besides, common vehicle owners have voiced concerns over how higher ethanol blending will invariably impact engine performance, mileage, and long-term reliability for many vehicles.

Meanwhile, many car owners voiced their curiosity about the cost-effectiveness of blended fuel on social media — enquiring if ethanol-blended fuel will cost less than petrol — even as the government hiked petrol prices twice in the last week. Many wondered if it would be better to shift to electric cars or wait for automakers to roll out E20-E30 compatible cars.

Will comply: Maruti Suzuki

RC Bhargava, chairman of Maruti Suzuki India Ltd, the largest automobile manufacturer in India, earlier told Mint 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.

BIS norms have established technical pre-requisites for safe use of ethanol-blended fuels — including percentage of ethanol to be blended with petrol, permissible impurity levels, and testing methods — providing car makers, OMCs and component suppliers with a formal benchmark for certifying higher ethanol blends.

The standards are aimed at ensuring compatibility of the fuel with engines, fuel injection systems and vehicle components.

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,” AIDA president Vijendra Singh said.

“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.

Why now

The US-Iran standoff is continuing to squeeze crude prices, the effect of which has now trickled down to India, with Oil Marketing Companies (OMCs) increasing petrol and diesel prices. The cost of CNG and LPG cylinders has also surged.

And with no end in sight to the West Asia war, Prime Minister Narendra Modi has urged citizens to limit non-essential travel, work from home and convene meetings online to conserve fuel.

Ethanol blending has become a priority for the government because it is produced domestically, primarily from sugarcane and grains. Meanwhile, India imports more than 85% of its crude oil requirement.