Government Rules Out Ethanol-Diesel Blending After Tests; Studies Ethanol as Cooking Fuel Alternative

The Government has ruled out the use of ethanol in diesel after tests found that mixing the two fuels sharply reduces diesel’s flash point, as per The Moneycontrol news report. This was found to be a problem for the handling of the fuel. 

Public sector Oil Marketing Companies (OMCs) conducted tests at their research and development centres. Accredited laboratories and automobile manufacturers were also involved in the evaluations. 

Petroleum Minister of State Suresh Gopi told the Rajya Sabha on August 10 that ethanol-blended diesel did not meet the flash point requirement for diesel because of the presence of ethanol. 

Petrol Blending Stays at 20% 

There is also no decision at present to raise ethanol blending in petrol above 20%. Gopi said any proposal for a higher blend would be considered only after further scientific and technical studies. 

The government would also consult automobile manufacturers, OMCs and research institutions before taking a decision on higher blending. 

Ethanol Cooking Fuel Under Study 

The government is separately examining ethanol as a cooking fuel. According to Gopi, it could provide an alternative to fossil fuel-based cooking and reduce dependence on imported LPG. 

The use of ethanol for cooking could also provide another outlet for surplus ethanol production capacity. Development work is being undertaken by the LPG Equipment Research Centre (LERC), along with public sector OMCs. 

LERC is a joint undertaking of Indian Oil Corporation, Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL). The organisations are working on cooking equipment and other requirements for ethanol-based cooking. 

1,048.5 Crore Litres Allocated 

OMCs continue to procure ethanol for petrol blending through tenders to registered producers. For ESY 2025-26, a tender issued in September 2025 sought around 1,050 crore litres. 

Offers received stood at nearly 1,760 crore litres, around 68% above the quantity sought. OMCs have since allocated 1,048.5 crore litres to 378 registered suppliers for supply during the four quarters of ESY 2025-26. 

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Conclusion 

The findings from tests have ruled out ethanol-diesel blending for now. Meanwhile, the government is continuing ethanol procurement for petrol blending and examining its use in cooking. 

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