West Asia Conflict: Govt hints at 21% ethanol blending
India is set to push ethanol blending beyond 20% to ~21%, backed by surplus domestic supply and flexible BIS norms. The move strengthens energy security, cuts crude import costs, and supports farmers, while flex-fuel vehicles (E20–E85) add momentum to long-term biofuel adoption despite higher ethanol procurement costs.
The government on Monday hinted that India can increase ethanol blending in petrol to 21 per cent from the current 20 per cent.
Citing the Bureau of Indian Standards (BIS), Ministry of Heavy Industries (MHI) Additional Secretary Hanif Qureshi said that E21 can “be there.”
Speaking at the inter-ministerial briefing on West Asia on Monday, he said “The government is committed to use biofuels as far as possible and E20 has already taken place. The BIS has already said that +/- 1 per cent blending can be there. So, about 21 per cent that much level can be there.”
The ethanol blended petrol (EBP) programme has helped India save roughly 6 million tonne (mt), or around 44 million barrels annually. In the last 10 years, the programme has helped over 18 mt of crude oil imports, saving ₹1.36 lakh crore in foreign exchange.
Qureshi also pointed out that flex fuel vehicles are another avenue to reduce import dependence on crude oil.
“There is also a programme of flex fuels and the industry has already come up with models, which are compliant with flex fuels. So, flex fuels means that from E20 to E85. The engines can take that blend without any degradation in performance. So, we have seen development of 4-wheelers as well as 2-wheelers, which are capable of using flex fuels. So, we are confident that the use of flex fuels will also grow. That will also ease pressure on crude oil imports,” he emphasised.
In the ethanol supply year (ESY) 2025-26, which began in November 2025 and will last till October 2026, the total supply requirement for 20 per cent blending is 1,350 crore litres.
The volume of ethanol required for 21 per cent blending can easily be met from domestic sources considering India now has overcapacity of grain-based capacity.
For instance, in ESY 2025-26, the PSU Oil Marketing Companies (OMCs) floated tenders to procure around 1,050 crore litres of ethanol, against which eligible offers aggregated to 1,759 crore litres, indicating substantial surplus.
According to the roadmap for ethanol blending in India 2020–25 prepared by the Inter-Ministerial Committee led by NITI Aayog, the requirement of ethanol for 20 per cent blending in ESY 2025–26 was estimated at about 1,016 crore litres, of which around 466 crore litres was projected from non-sugar based sources.
Public Sector OMCs achieved the target of 10 per cent ethanol blending in petrol in June 2022, five months ahead of the target during ESY 2021–22.
Ethanol blending levels thereafter increased to 12.06 per cent in ESY 2022–23, 14.60 per cent (ESY 2023–24), and 19.24 per cent (ESY 2024–25). 19.98 per cent till March 15, 2026 (ESY 2025-26).
The procurement prices of ethanol have been increasing over the years. For the ESY 2024-25, the average procurement cost of ethanol stands at ₹71.55 per litre (inclusive of transportation and GST), which is higher than petrol produced in refineries.
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Source : The Hindu Business line
