The Centre is unlikely to rush the next phase of India’s ethanol-blended petrol programme, with the proposed transition to E25 fuel expected to be delayed as policymakers weigh consumer concerns and vehicle preparedness, according to reports.
The rethink comes months after India accelerated the nationwide rollout of E20 petrol, achieving its blending target ahead of schedule. While the move has been projected as a major step towards reducing crude oil imports and lowering emissions, complaints over fuel economy and compatibility with older vehicles have triggered fresh discussions within the government.
Government weighs calibrated shift beyond E20
According to sources, senior government officials recently reviewed the proposed move beyond E20 and agreed that any transition to E25 should be gradual rather than immediate.
Officials are understood to have stressed the need for scientific assessment of consumer complaints and adequate time for automobile manufacturers to prepare vehicles for higher ethanol blends.
“There is a view within the government that any transition beyond E20 will need to be spaced out,” a senior official was quoted as saying by The Indian Express. The report said vehicle manufacturers had conveyed a similar assessment.
Recent policy steps fuelled speculation
Questions over the government’s timeline for E25 gathered pace after two recent policy decisions.
The Centre recently exempted blended fuels containing 22 to 30 per cent ethanol from central excise duty. Separately, the Bureau of Indian Standards notified fuel specifications for higher ethanol blends.
Although the government has not announced any date for introducing E25 petrol, these decisions were widely interpreted as preparatory steps for the next stage of ethanol blending.
Consumers raise mileage and compatibility concerns
Some motorists have complained that the shift to E20 has reduced fuel efficiency, particularly in older vehicles that were originally designed for lower ethanol blends.
Industry experts say ethanol contains less energy than petrol, which can result in lower mileage. Higher ethanol blends may also require changes in engine calibration and fuel system components.
Automobile manufacturers have also indicated that moving to E25 would require additional engineering work, including testing for corrosion resistance, fuel-system durability, material compatibility and regulatory certification before vehicles are approved for use.
Dealers seek review of E20 rollout
The concerns have also reached fuel retailers.
Earlier this week, the Odisha Petroleum Dealers Association urged the government to reconsider the mandatory E20 rollout, saying dealers were facing complaints from customers over vehicle performance and compatibility.
Association president Sasanka Sekhar Sahu told ANI that many consumers blamed petrol pumps for issues that stemmed from the policy shift.
He suggested that the government consider reverting to E10 petrol until vehicle compatibility improves.
Government, industry defend ethanol programme
The government and automobile industry, however, have maintained that India’s ethanol blending programme has been introduced through extensive scientific evaluation and testing.
At a recent press briefing, former Engineers India Limited CMD Vartika Shukla said the E20 programme followed years of research and consultation with automakers and testing agencies.
Representatives from Maruti Suzuki, Toyota Kirloskar Motor and Hero MotoCorp also said extensive testing had not found evidence that E20 causes abnormal damage to vehicles, including many manufactured before the E20 mandate.
They argued that ethanol blending helps reduce dependence on imported crude oil while supporting India’s climate goals.
The government, however, has indicated that not all complaints are being taken at face value, with officials describing some consumer concerns over E20 as overstated.
Officials have maintained that any future increase in ethanol blending will be undertaken only after further testing and stakeholder consultations.