Asia’s ethanol targets and recent developments
Asia is accelerating ethanol adoption to cut fuel imports and emissions. India leads with 20% blending, while Indonesia targets E10 by 2028. Vietnam will mandate E10 from 2026, as Thailand and Philippines expand biofuel incentives and voluntary higher blends.
Indonesia, Asia’s largest gasoline importer, plans to impose a mandatory bioethanol content level of 10% for gasoline in 2028, energy ministry official Tri Winarno has said.
Here is a look at the latest developments in the adoption of ethanol-blended fuel in the region.
INDONESIA
Indonesia has pushed its target to impose a mandatory 10% ethanol blend in gasoline, or E10, to 2028 from an earlier 2027 goal citing ethanol supply constraints for the delay.
The country plans to produce 0.80 million kilolitres of bioethanol by 2028, energy ministry data showed, with national gasoline demand at 39.9 million kilolitres.
INDIA
India increased ethanol blending in gasoline to 20% last year, up from 12% in 2023, a strategy developed to reduce crude import dependence and stabilise its sugar sector overproduction.
THAILAND
Thailand extended subsidies on biofuels by two years until September 24, 2026, seeking to boost the use of E20 amongst other biofuel blends.
The country’s oil fuel fund is used to subsidize prices of ethanol made from sugarcane and cassava, as well as biodiesel from palm oil, to promote use.
Going forward, policy is moving towards standardization around E20 and retiring legacy grades fuels.
VIETNAM
Vietnam will switch completely to ethanol-blended gasoline from 2026 onwards, the Ministry of Industry and Trade said on February 11, confirming a plan it announced last year.
All gasoline must be blended with 10% ethanol to produce E10 for nationwide distribution from June 1, 2026 onwards.
E5 RON92 gasoline, which is 5% blended with ethanol, will continue to be permitted for gasoline-powered engines until the end of 2030, according to the ministry.
The use of B5 and B10 biodiesels it not yet compulsory, but production and distribution of these biodiesels are encouraged, the ministry said.
PHILIPPINES
The Philippines has a mandate to blend 10% ethanol in gasoline under its Biofuels Act of 2006, with E10 implemented nationwide since 2012.
The Department of Energy in 2024 allowed oil companies to market E20 gasoline on a voluntary basis, but has not set a binding timeline for making the 20% blend compulsory, citing the need to ensure sufficient domestic ethanol supply and vehicle compatibility.
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Source : The Hindu Business line
