The government has notified a new standard for higher ethanol-petrol blends - E22, E25, E27 and E30 fuels - paving the way for ethanol blending in petrol beyond the current 20% level.

The increase in ethanol blending comes amid reports of surplus ethanol availability and efforts to reduce crude oil imports due to the conflict in West Asia, which has affected global energy supply chains. The new Bureau of Indian Standards (BIS) standard, published on May 15th, lays down specifications for fuel blends produced by mixing completely water-free (anhydrous) ethanol with motor petrol for use in "positive ignition engine-powered vehicles", or petrol-powered vehicles. The standard defines technical and quality parameters, including composition, blending requirements, permissible impurity levels, testing methods and safety norms.

India has formally notified standards for E22, E25, E27 and E30 fuels, expanding the regulatory framework for higher ethanol fuels and flex-fuel vehicles.

The development comes at a time when geopolitical tensions in the Middle East continue to affect global energy markets, while India continues efforts to reduce dependence on crude oil through alternative fuels and domestic ethanol production.

The BIS notification, published in the Gazette of India, stated that the new standards came into effect from May 15th, 2026. The newly introduced standard, IS 19850:2026, covers specifications for "E22, E25, E27 and E30 Fuel, Admixture of Anhydrous Ethanol and Motor Petrol for Usage in Positive Ignition Engine Powered Vehicles."

The notification establishes a fuel-quality framework for blends beyond E20. The move also comes weeks after the government separately proposed draft amendments to recognise E85 and E100 fuels under the Central Motor Vehicles Rules, indicating a policy direction towards higher ethanol usage and flex-fuel vehicles.

Meanwhile, amid concerns regarding the impact that E25 fuel, which contains 25% ethanol blending, may have on existing vehicles in terms of mileage and engine life, the petroleum ministry has tasked the Automotive Research Association of India (ARAI) with conducting a detailed study on vehicles currently compliant with E10 and E20 fuel standards. Most existing vehicles are fully compliant with E10, while fully E20-compliant vehicles entered the market only after April 2025.

The notified fuel norms for different grades of ethanol and the proposed ARAI study on E25 could allow the government to increase blending levels beyond 20%, although potentially below 25%, to utilise surplus ethanol availability, experts said.

According to people aware of the developments, an inter-ministerial group meeting held last week was informed by BIS that increasing ethanol blending in petrol by an additional 1% beyond the current 20% level would not pose significant issues. "However, considering that increasing blending to 25% would represent a substantial jump, ARAI will now conduct the study using vehicles that are E10 and E20 compliant," an official said.

The All India Distillers' Association (AIDA) described the government's move as a "significant and timely step" towards increasing ethanol blending and reducing dependence on crude oil imports.

People familiar with the matter said there is a need to assess the engine life and performance, including mileage, of vehicles not designed for higher ethanol blends, along with their emissions, upfront costs and recurring expenses. According to industry best practices, vehicle samples should be tested over a distance of 60,000-70,000 km to enable a comprehensive assessment.

Automobile manufacturers had previously begun producing E10-compliant vehicles from 2010 onwards following the earlier increase in ethanol blending.

Automakers have largely completed the transition towards E20-compatible vehicles. However, higher blends such as E30, E85 and E100 are expected to require additional engineering and validation work relating to engine calibration, fuel-system durability, corrosion resistance and material compatibility.

Industry stakeholders have also highlighted the need for greater alignment across fuel infrastructure, dispensing systems and nationwide fuel consistency before higher ethanol blends can be implemented at scale.

The latest notification provides automakers, suppliers and fuel companies with regulatory direction as India expands ethanol blending beyond the current E20 programme.

Apart from the E30 fuel specifications, BIS also notified revised standards for Dimethyl Ether (DME)-blended LPG and other industrial specifications. The notification was issued under Rule 15(1) of the Bureau of Indian Standards Rules, 2018.