India: Going Ahead for Higher Ethanol Content in Petrol

India’s federal government in New Delhi, encouraged by a recent court verdict, now plans to increase the limit of ethanol blending with pure petrol up to 30 per cent by 2030, as the 20 % ethanol gets the green signal for use in petrol-fed vehicles from the  Supreme Court. The apex court of India on 1 September 2025 dismissed a public interest litigation (PIL) challenging the ethanol blending policy allowing the sale of E20 fuel through over 90,000 petrol pumps (fuel stations) across the country. Ethanol (CH₃CH₂OH), a biofuel introduced in the market as a renewable and eco-friendly alternative to hydrocarbon-based fuels. The plea was made to direct the government to continue supplying ethanol-free petrol for consumers along with the Ethanol 20 (E20) petrol for the benefit of older vehicle owners, which is understood as non-incompatible with the new mixture of petrol. After the court ruling, New Delhi may push for more volume of ethanol blending with petrol, arguing that it has benefited the country to save over Rs 1.2 lakh crore in foreign exchange with the reduction of imported crude oil volumes in the last ten years. However, the aggressive push for greener fuels may need pre-research (about rusting of fuel tanks & pipes along with degradation of gaskets and other materials in the fuel system over time if not immediately) and adequate public awareness about both its-- positive and negative implications.

Meanwhile, Assam in Northeast India,  is waiting for Prime Minister Narendra Modi to inaugurate the country’s first bamboo bio-refinery in Numaligarh on  14 September. PM Modi is visiting Assam to grace the inaugural program of the 100th birth anniversary of Dr Bhupen Hazarika, where the Reserve Bank of India is scheduled to release a 100-rupee coin commemorating the Bharat Ratna awardee. Established at Numaligarh Refinery Limited, the ambitious project is designed to annually process 300,000 metric tons of bamboo to produce nearly  50,000 metric tons of ethanol along with other chemicals.  The bamboo-based bioethanol plant, erected with an investment of Rs 7,200 crore, will directly benefit over 3,000 bamboo farmers in the region.

However, supporting the government’s initiatives to reduce the dependence on fossil fuel (as New Delhi has to spend a huge volume of money for its import), restricting environmental pollution and also improving the rural economy (with ethanol production), the corrosive nature of ethanol must not be overlooked in terms of the engines’ longevity and performance. The modern vehicles (read manufactured after 2022 by leading automobile companies) can consume  E20 with no difficulties, but 80 % petrol-run small cars and two-wheelers in India are actually calibrated for standard petrol (E0-E10). So a separate outlet with the standard fuel in selected petrol pumps deserves consideration. Otherwise, those vehicles may need preventive maintenance of the engine, fuel tank, pipes, gaskets, carburettor and other connected metals, if E20 or petrol with more ethanol is regularly used.

Lately,  an Assam-based graduate engineers’ forum cautiously appreciated the initiative with caveats for the owners of old vehicles, which were designed for zero to 5 % ethanol mixing. E20 may not create any problem for the cars and two-wheelers, manufactured after 2022, but most of the old vehicles were not designed for E20 fuel (but now calibrated for the same) and hence the owners need to be a little careful while running their vehicles with the current standard of fuel stated a statement issued by All Assam Engineer’s Association (AAEA). Ethanol has a hygroscopic character (meaning even after mixing with petrol, it can absorb moisture from the air). So any contact with water molecules (because of loosely placed tank-knobs during the rainy season) and vapour, the blended fuel may absorb it. Thus, a distinct layer of water may be formed at the bottom of fuel tanks, which would create starting problems and even jerks during the ride. The experts suggest keeping the fuel-tank relatively full (with less air inside), igniting the engine frequently (to avoid storing E20 in the tank for months, especially during the monsoon) and going for timely and careful servicing.

“We support the government’s ethanol mixing policy with an aim to reduce the burden on imported crude oil and greenhouse gases to the atmosphere. Assam has over 15 ethanol projects, including the NRL bio-refinery. It’s understood that the policy has been helping the farmers financially with no corrupt middlemen in the circuit. However, for the north-eastern region with higher humidity and frequent rains, a special awareness program for the old vehicle owners should be organized,” said AAEA president Er Kailash Sarma, adding that it was a relief for the affected vehicle owners that the  Society of Indian Automobile Manufacturers and the Automotive Research Association of India had assured of no impact on warranty and insurance criteria even using E20 fuel.

The prime opposition party, Congress, has made a political statement over the government's push for ethanol blending with petrol. A party leader publicly alleged that Union highways minister Nitin Gadkari’s close relatives were benefiting financially from the particular policy. However, the Gadkari family strongly denied. One of the most performing ministers in PM Modi's cabinet,  Gadkari, used to push for ethanol blending, claiming that it would reduce the price of petrol up to Rs 50 per litre, even though it did not work. The Congress spokesman even urged Modi to announce a probe by Lokpal into the matter, where ethanol companies owned by  Gadkari’s two sons recorded high revenue jumps in the sector.

Also Read: Is New Delhi offering space to Hasina and her party leaders in India?