India has laid the regulatory and technical groundwork for petrol blended with up to 30% ethanol, signalling a likely acceleration of the country’s biofuel programme at a time when volatile crude oil prices, supply disruptions in West Asia and rising import costs are sharpening energy security concerns.
In a notification dated May 18, the Bureau of Indian Standards (BIS) notified specifications for E22, E25, E27 and E30 fuel blends, extending India’s ethanol roadmap beyond the ongoing nationwide E20 rollout.
India imports nearly 88% of its crude oil requirement, while crude petroleum remained the country’s largest import item at $134.7 billion out of the total import bill of $775 billion in FY26.
The BIS notification, effective from May 15, creates a new technical specification framework for higher ethanol blends and is expected to support future deployment of flex-fuel and higher ethanol-compatible vehicles in the country.
The standards define technical parameters for higher ethanol-blended petrol, including ethanol percentage, octane levels, sulphur limits, vapour pressure, corrosion resistance, water content and fuel stability requirements.
The norms are aimed at ensuring compatibility of higher ethanol blends with engines, fuel injection systems and vehicle components as India gradually expands flex-fuel mobility.
The development assumes significance as India intensifies efforts to reduce dependence on imported crude amid rising geopolitical risks, elevated shipping costs and pressure on the oil import bill.
Industry bodies and ethanol manufacturers have increasingly pushed for movement towards E22 and higher blends citing surplus ethanol availability, underutilised capacities and the need for faster substitution of imported fossil fuels.
According to Indian Sugar & Bio-Energy Manufacturers Association (ISMA) data, India’s ethanol production capacity currently stands at around 2 billion litres, while procurement by oil marketing companies has so far remained around 1 billion litres, implying capacity utilisation of nearly 50%.
Industry executives said the newly notified standards could help improve ethanol offtake and support future blending expansion.
“The publication of BIS standards for E22 to E30 fuels is a significant and timely step towards advancing India’s ethanol blending roadmap,” said Vijendra Singh, President, All India Distillers’ Association (AIDA).
Calling it a “forward-looking step” towards reducing crude oil dependence and strengthening India’s cleaner mobility ecosystem, Singh said the introduction of E25 standards could help absorb surplus sugar and ethanol production capacities while preparing the industry for higher blending adoption.
He, however, said the long-term roadmap should increasingly move towards significantly higher ethanol blends such as E85 and E100 through rapid expansion of flex-fuel vehicle ecosystems.
“FFVs can play a transformational role in enabling higher ethanol consumption, strengthening energy security, reducing emissions, and creating a sustainable long-term market for domestic biofuels,” he said.