Amid E20 debate, Centre evaluating phased rollout of E25 petrol by 2029

As the nationwide rollout of E20 petrol triggers a debate over mileage and vehicle compatibility, the government is working on a longer-term ethanol blending roadmap. Business Today had earlier reported that the Centre is evaluating E21 by 2027 and E25 by 2029 through a calibrated transition.

The ongoing debate over E20 petrol has brought renewed attention to the government's long-term ethanol blending strategy, with the Centre evaluating a phased transition towards higher ethanol blends over the next few years.

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According to sources, the government is evaluating a roadmap for the rollout of E21 blended petrol by 2027, while E25 blending could be targeted by 2029. Sources had earlier told Business Today that the Centre may also cap ethanol blending in petrol at 25 per cent, making E25 the likely upper limit under the current policy framework.

The roadmap assumes significance as E20 petrol, comprising 20 per cent ethanol and 80 per cent petrol, has become the standard fuel available across the country. The rollout has sparked a wider debate after consumers raised concerns over fuel economy, vehicle compatibility and operating costs, even as the government has maintained that the ethanol blending programme is critical for reducing crude oil imports, lowering carbon emissions and supporting India's sugarcane economy.

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"The transition towards higher ethanol blending will happen in a calibrated and phased manner so that the automobile industry gets adequate time to prepare engines, supply chains and infrastructure accordingly," a source aware of the discussions said.

Another source said the government was conscious of concerns surrounding vehicle compatibility and mileage efficiency.

"The idea is not to disrupt the ecosystem suddenly. The transition will be gradual and aligned with industry readiness," the source had said.

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The Centre had advanced its E20 blending target by five years, achieving nationwide availability well ahead of the original 2030 deadline. The programme forms a key pillar of India's energy security strategy, aimed at reducing dependence on imported crude oil while creating additional demand for domestically produced ethanol.

According to estimates, achieving 20 per cent ethanol blending has helped India save nearly 4.5 crore barrels of crude oil annually while reducing foreign exchange outflow by around ₹1.5 lakh crore.