Key Points

The Bureau of Indian Standards (BIS) on 15 May 2026 notified new standards for higher ethanol-petrol blends including E22, E25, E27 and E30. The move expands India’s fuel blending framework beyond the current E20 mandate without mandating immediate retail availability.

The standard (IS 19850:2026) lays down specifications for fuel blends created by mixing anhydrous ethanol with motor gasoline for use in petrol powered vehicles with spark ignition engines.

The standards define technical and quality benchmarks for higher ethanol blends, including composition, blending requirements, permissible impurity levels, testing methods and safety norms. Industry officials said the move creates a formal regulatory framework for oil marketing companies, automobile manufacturers, fuel testing agencies and component suppliers to begin preparing for future rollout of fuels with ethanol content higher than 20%.

India currently supplies E20 fuel, a 20:80 blend of ethanol and petrol, across fuel pumps nationwide. The government had earlier advanced its target for achieving 20% ethanol blending from 2030 to 2025-26.

The latest standards signal that policymakers are now preparing the groundwork for the next stage of the ethanol blending programme, even though no timeline has yet been announced for commercial rollout of E22 to E30 fuels.

The push for higher ethanol blending comes amid increasing fuel prices, renewed concerns over India’s dependence on imported crude oil, and volatility in global energy markets linked to the ongoing West Asia conflict.

India imports more than 85% of its crude oil requirement, making fuel diversification a major policy priority. Ethanol, largely produced domestically from sugarcane and grains, is being promoted as a way to reduce import dependence, support farmers and lower emissions from transport fuels.

Government discussions on moving beyond E20 reportedly intensified after the escalation of tensions involving Iran earlier this year. The Ministry of Petroleum and Natural Gas and the Ministry of Heavy Industries have since consulted automobile manufacturers and fuel sector stakeholders on the possibility of transitioning to higher blends such as E25.

See Also: Maize Ethanol Shift Squeezes Sugar Mills, Cane Farmers Question Falling Payments

According to industry data, India’s ethanol production capacity currently stands at around 19 to 20 billion litres annually, while demand under the E20 blending programme is estimated at roughly 11 billion litres. Distillers’ associations have described the BIS notification as a timely step that could help absorb surplus ethanol and sugar production capacity.

The All India Distillers’ Association said the notification reinforced the government’s long term commitment to higher ethanol adoption and reduced crude oil dependence. Industry representatives are now also pushing for eventual adoption of higher blends such as E85 and E100 through flex fuel vehicle systems.

However, the transition beyond E20 has also triggered concerns within the automobile industry and among consumers.

India currently has around 240 million two wheelers and 40 million cars on the road that were originally designed for lower ethanol blends. Manufacturers and vehicle owners have raised questions about how older vehicles would perform with fuels containing 25-30% ethanol.

Concerns have centred on engine life, fuel efficiency, emissions, component durability and long term maintenance costs. Ethanol contains lower energy content than petrol, which experts say could lead to a marginal reduction in mileage at higher blending levels.

The petroleum ministry has reportedly tasked the Automotive Research Association of India (ARAI) with conducting a detailed study on the impact of E25 fuel on vehicles currently compliant with E10 and E20 standards.

Officials said the study would examine engine performance, emissions and operating costs over long distance testing of 60,000 to 70,000 kilometres before any wider policy rollout is considered.

Automobile manufacturers have indicated they are capable of complying with future fuel standards if required. Industry executives have also stressed that any transition beyond E20 would need gradual implementation, clear consumer guidance, vehicle compatibility standards and investments in fuel storage and dispensing infrastructure.

[DS]

Suggested Reading: