Government Plans to Push Ethanol Blending Beyond 20%, Focuses on Flex-Fuel Vehicles

The Indian government is actively evaluating proposals to raise the ethanol blending limit in petrol beyond 20%, aiming to promote the adoption of flex-fuel vehicles across the country. Addressing 'The India Sugar and Bio-Energy Conference 2026' via videoconference on Wednesday, Tarun Kapoor, Advisor to the Prime Minister, highlighted that the country's E20 program has proven "highly successful" to date. Kapoor noted that several leading automakers have already announced concrete plans to introduce flex-fuel models to the Indian market in the near future. He emphasized that the government is now shifting its strategic focus toward scaling up flex-fuel vehicles and exploring the feasibility of blending petrol with more than 20% ethanol. Alongside these efforts, authorities will also need to expand the retail availability of pure ethanol at fuel outlets nationwide. Citing the ongoing geopolitical tensions in West Asia—which have disrupted global crude oil supplies and pushed oil prices up to nearly $100 per barrel—Kapoor underscored the critical necessity of maximizing the utilization of domestic energy resources. Furthermore, he stated that India's domestic ethanol manufacturing capacity has now surpassed current blending requirements. Consequently, the industry must explore alternative avenues for ethanol consumption. Kapoor suggested evaluating the potential use of biofuel-based additives and isobutanol in diesel fuel, while urging ethanol manufacturers to diversify their production into value-added byproducts, including Compressed Biogas (CBG) and potash.