Govt mandates sale of petrol with up to 20% ethanol blending from April 1

Ethanol blending programme was introduced to reduce reliance on fossil fuels and cut energy imports

The government has mandated the sale of petrol blended with up to 20 per cent ethanol and a minimum Research Octane Number (RON) of 95 from April 1, according to a notification issued by the Ministry of Petroleum and Natural Gas (MoPNG).

 

The decision comes against the backdrop of the recent controversy over ethanol blending amid claims that blending ethanol — an agricultural by-product derived from sugar processing and feedstocks such as rice and maize — impacts vehicle efficiency and mileage. 

“…the central government hereby directs that the oil companies shall sell Ethanol Blended Motor Spirit with percentage of ethanol up to 20 per cent as per the Bureau of Indian Standards (BIS) specifications, and having minimum Research Octane Number (RON) of 95, in the States and the Union territories,” the notification dated February 17 said.

 

 

The government may, in special circumstances, permit oil marketing companies (OMCs) to sell ethanol-blended petrol meeting the RON specifications prescribed by the BIS, for a specified period and in designated regions, it added.

 

RON indicates the fuel’s ability to resist “knocking”, which causes loss of efficiency and potential engine damage. A fuel with higher RON, for example 95-98, has greater resistance to knocking.

 

The government’s decision was welcomed by the ethanol industry, which said the move provides long-term demand certainty for producers nationwide, and is expected to benefit grain-based distilleries, maize processors, and sugar mills.

 

“It will encourage fresh investments, capacity expansion, and technological advancement in the biofuel ecosystem while also strengthening farmer incomes through higher demand for sugarcane, maize, and other feedstocks,” said All India Distillers Association (AIDA).

 

Despite the controversy around E20 fuel, the government has denied allegations of reduced fuel efficiency because of the blend, and has instead highlighted the scheme's benefits. On December 11, 2025, Oil Minister Hardeep Singh Puri said in Parliament that the country has saved around ₹1.4 trillion in import bill while strengthening the agricultural economy by giving ₹40,000 crore annually to Indian farmers growing stock crops for ethanol extraction.

 

“The ethanol blending mandate will serve multiple purposes, including utilising ethanol production capacity created in the country, while also ensuring energy security and reducing reliance on imports,” said Anish De, global head for energy, natural resources, and chemicals (ENRC) at KPMG. Increasing ethanol blending beyond 20 per cent would require engineering changes in vehicles, as most vehicles in India are designed to tolerate 20 per cent ethanol-blended petrol, he added.

 

The government had introduced the ethanol blending programme, which targeted 20 per cent ethanol blending in petrol, to reduce reliance on fossil fuels and cut down on energy imports. The country imports around 90 per cent of its crude oil requirements and 50 per cent of natural gas needs.