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Explained: Why India Is Expanding Ethanol Blending | E20,...
Business Today · 2026-06-16 · via Business News India: Latest Business News Today, Share Market, Economy

India is preparing for its most ambitious fuel transition yet. After rolling out E20 petrol nationwide, the government has now notified standards for E22, E25, E27 and E30 fuels while also granting legal recognition to 100% ethanol fuel. Union Minister Nitin Gadkari says India is moving towards flex-fuel vehicles capable of running on E85 and even E100, with major carmakers expected to launch compatible models soon. The push comes as India looks to reduce its dependence on imported crude oil, strengthen energy security and support domestic farmers through increased ethanol production. But while higher ethanol blending promises lower emissions, reduced oil imports and greater use of renewable fuel, concerns remain over vehicle compatibility, corrosion, fuel efficiency and mileage losses. With nearly 90,000 fuel stations already offering E20, is India ready for the next phase of the ethanol revolution? This report examines the benefits, risks and economic impact of India's bold fuel strategy.