India explores blends beyond E20 as ethanol overcapacity mounts

mandate on using E20 petrol in all vehicle segments effected in April 2025-created a consumer outcry, as this blend allegedly resulted in declining vehicle efficiency and mileage drops.

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Amid the uproar, the Centre informed the Parliament in March that as per its analysis, ethanol blending has not impacted vehicle performance, and no decision has been taken so far to enhance blending of the biofuel beyond 20%.

Emailed queries sent on 9 December to the ministries of petroleum and natural gas (MoPNG), ministry of road transport and highways (MoRTH), ministry of heavy industries (MHI), and the Society of Indian Automobile Manufacturers (Siam) remained unanswered till press time.

Why blend ethanol?

Beyond stakeholder debates, the government has maintained that blending ethanol in fuel will reduce India's dependence on fuel imports, and generate income for the country's farmers. India paid an import bill of $137 billion to bring in 234 million tonnes of crude oil in FY25, according to data from petroleum planning and analysis cell.