The Central government could delay the rollout of 25 per cent ethanol-blended petrol (E25), the Indian Express reported, after mounting backlash over mileage loss and engine compatibility issues linked to the ongoing E20 rollout across the country.
The recalibration comes at a time when India’s ethanol blending programme has otherwise moved ahead of schedule, having advanced its 20 per cent blending target from 2030 to 2025-26 under the amended National Policy on Biofuels, 2018.
Why consumers are pushing back
Vehicles built between 2012 and March 2023 were designed for petrol with up to 10 per cent ethanol content. Those manufactured from April 2023 can handle up to 20 per cent. Only vehicles made from April 2025 onward are fully compliant with E20 fuel.
This mismatch has led to a wave of complaints from vehicle owners over reduced mileage and rising maintenance costs, particularly for older cars and two-wheelers. Automobile dealers and industry bodies have since urged the Centre to reassess the pace of the ethanol rollout before pushing blending levels any higher.
Government’s response so far
Officials have signalled that any expansion beyond the mandatory 20 per cent blending threshold would require corresponding upgrades in vehicle technology.
Promoting flex-fuel vehicles, which can run on both E20 and higher ethanol blends, is being seen as a more practical near-term step than accelerating the E25 timeline.
A phased roadmap is reportedly under evaluation, with E21 blended petrol targeted for 2027 and E25 for as late as 2029. Twenty-five per cent is being viewed internally as a likely ceiling for ethanol content under the current policy framework, with the transition designed to give automakers time to adapt engines, supply chains and infrastructure without disrupting the market.
The bigger picture
India crossed its 20 per cent ethanol blending target roughly five years ahead of the original deadline, a milestone the government has linked to reduced dependence on crude oil imports and stronger demand for domestically produced ethanol from sugarcane and grain. The programme has also been positioned as a support mechanism for farm incomes and foreign exchange savings.
Even as it manages the compatibility concerns surfacing now, the Centre has moved to widen the incentive structure for higher blends. It has exempted excise duty on E22, E25, E27 and E30 petrol, signalling continued long-term intent to push blending levels higher once vehicle readiness catches up.
For now, though, the message from the government appears to be one of caution rather than acceleration, with the E20 rollout itself still working through teething issues before any higher blend becomes the retail norm.
