US-Iran War: Centre may raise ethanol blending to 21%

India may soon push ethanol blending in petrol slightly beyond its current 20 per cent target, with the Centre indicating that a 21% blend is feasible under existing norms. The indication came during an inter-ministerial briefing on the evolving West Asia situation, where Additional Secretary in the Ministry of Heavy Industries, Hanif Qureshi, said the flexibility permitted under BIS guidelines allows for a one percentage point variation.

Qureshi noted that India has already achieved the 20% ethanol blending target and remains committed to expanding biofuel usage. The allowable margin under BIS norms enables blending levels to reach around 21% without requiring regulatory changes.

The ethanol-blended petrol programme has played a key role in reducing India’s dependence on crude oil imports. According to government estimates, the initiative helps save nearly 6 million tonnes, or about 44 million barrels, of crude oil annually. Over the past decade, it has resulted in cumulative savings of more than 18 million tonnes, translating into foreign exchange savings of Rs 1.36 lakh crore, informed Hardeep Singh Puri recently.

Earlier Union Road & Transport Minister Nitin Gadkari had hinted that guidelines for 27% ethanol blending (E27) might be introduced by the Centre.

The government also highlighted the growing adoption of flex-fuel vehicles, which can run on ethanol blends ranging from E20 to E85. Automobile manufacturers have already introduced such models, and their uptake is expected to rise in the coming years.

For the 2025–26 ethanol supply year, the requirement for 20% blending is pegged at 1,350 crore litres. Officials indicated that the additional demand for a 21% blend can be met domestically, supported by expanded grain-based ethanol production and surplus supply reflected in recent tenders.