Government Begins E25 Petrol Testing on Vehicles; Study Report Expected by End of Next Year

Written by: Team Angel OneUpdated on: 1 Jul 2026, 6:18 pm IST
The government has started testing E25 petrol on E10- and E20-compliant vehicles through ARAI to evaluate performance and fuel efficiency over 150,000 km.
Government Begins E25 Petrol Testing on Vehicles
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

The Government has initiated testing of E25 petrol, a fuel blend containing 25% ethanol, as it explores the next phase of its ethanol blending programme, as per news reports.  

The exercise is aimed at increasing the use of domestically produced biofuel while reducing dependence on imported crude oil. 

The study is being carried out by the Automotive Research Association of India (ARAI), which has begun testing the fuel on E10- and E20-compliant vehicles. 

Vehicle Testing and Evaluation 

ARAI will assess the impact of the E25 blend on vehicle performance and fuel efficiency over a distance of 150,000 kilometres. 

The study report is expected to be completed by the end of next year. It will then be sent to the International Centre for Automotive Technology (ICAT) for vetting before being forwarded to the Ministry of Petroleum & Natural Gas. 

According to a senior ministry official, the ministry will decide if and when higher ethanol blends are to be mandated for use and sale in the country after the review process is completed. 

Existing Ethanol Blending Programme 

Production of E20 material-compliant vehicles began in April 2023. From 1 April 2025, all vehicles sold in India became material and fuel compliant with E20, while E20 petrol became mandatory for sale across the country from 1 April 2026. 

The government is examining a higher ethanol blend even as the E20 rollout continues. 

Consumer Feedback and Industry Response 

The existing E20 mandate, which came into effect in April 2026, has drawn criticism from some consumers, who have reported lower fuel efficiency. In some cases, vehicle owners also raised concerns about damage to vehicles that are not compatible with E20 fuel. 

The government and the automobile industry have rejected claims that E20 has caused vehicle damage. 

According to a senior industry executive, increasing the ethanol content further has become a risky decision because of the public backlash over E20. 

Read More: Government Rejects Misleading Claims on E20 Fuel, Says Ethanol Blending Is Scientifically Validated! 

Conclusion 

The E25 study will provide data on vehicle performance and fuel efficiency, forming the basis for the government's decision on the future use of higher ethanol blends in petrol.   

Want to read stock market updates in Hindi? Angel One News gives comprehensive share market news in Hindi.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Jul 1, 2026, 12:47 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers