Ethanol mixed into the fuel comes only from Indian producers, and there is no plan to bring in large quantities from the United States, government clarified in a statement yesterday.
As per the official release by the Ministry of Commerce and Industry on 6 August,2026, recent media claims that India is importing or intends to import large volumes of US ethanol for fuel blending are “baseless and factually incorrect.”
The release mentioned that ethanol used under the Ethanol Blended with Petrol Programme is “sourced entirely from domestic producers.” There is currently “no import of ethanol for fuel blending from the US.”
Govt stance on India-US trade talks
According to the official statement, “no concessions or commitment relating to the import of ethanol for fuel blending from the US has been made in the India-US trade discussions.” Any suggestion of a change in policy to permit large-scale imports of American fuel ethanol is “misleading.” India’s fuel blending programme and ethanol procurement continue to be governed solely by the country’s domestic requirements.
What does this mean for vehicle owners?
This assurance is important for ordinary vehicle owners. Many people have been concerned that imported ethanol could impact fuel quality, vehicle performance and price stability. By confirming that the supply continues to be fully domestic, the government is indicating that the existing system built around sugarcane, maize and other crops will continue without sudden disruption.
E20 fuel (80 per cent petrol and 20 per cent ethanol) is already changing the experience at petrol pumps across the country. Motorists are adjusting to the new blend and oil companies have expanded its availability.
Political claims and ongoing trade talks
The clarification comes at a time when political concerns have also been raised. Aam Aadmi Party national convenor Arvind Kejriwal has alleged that the Centre plans to introduce ethanol blending in diesel and aviation turbine fuel. He also advised people to hold off purchasing new petrol and diesel vehicles for the time being.
Similarly, Civil Aviation Minister Ram Mohan Naidu Kinjarapu also rejected claims on social media, stating that the suggestion of blending ethanol with Aviation Turbine Fuel (ATF) is “completely false and irresponsible.” He clarified that there is no such proposal and that ethanol and Sustainable Aviation Fuel (SAF) are entirely different. SAF is an internationally certified fuel recognised by the International Civil Aviation Organisation and meets strict global safety standards. Spreading misinformation on aviation safety, he stated, only creates needless anxiety among air travellers, whereas passenger safety remains the government’s highest priority.