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Government Strengthens Ethanol Blending Norms for OMCs

Written by: Team Angel OneUpdated on: 25 Aug 2026, 8:36 pm IST
The BIS is working to make the existing chloride limit for E20 petrol mandatory following concerns raised by automakers over fuel quality issues.
Government Strengthens Ethanol Blending
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As per The Economic Times report, the government is considering making the chloride contamination limit for E20 petrol mandatory for oil marketing companies and other entities involved in the automotive fuel supply chain. The existing limit is less than 3 parts per million (ppm). 

The limit is currently included in voluntary quality specifications for ethanol-blended petrol. The Bureau of Indian Standards (BIS), which sets standards for fuel quality, is working on making the requirement compulsory. 

Automakers Raise Concerns 

This comes after automakers raised concerns over the quality of E20 petrol available at fuel stations. They have flagged instances where the fuel contained higher chloride levels and excess moisture. 

Automakers have linked these issues to failures of certain vehicle components. In some cases, fuel samples collected from vehicle tanks were found to have high concentrations of chloride. 

The reports have drawn attention to the quality of E20 petrol after it enters the supply chain and reaches vehicles. 

India Has Reached E20 Target 

India has achieved its target of blending 20% ethanol with petrol, five years ahead of the original plan. E20 petrol is now being supplied more widely across the country. 

With the 20% blending target already achieved, the quality of ethanol-blended fuel is receiving greater attention. The chloride limit remains voluntary under the current specifications, although the government is considering changing that. 

The proposed requirement would cover oil marketing companies and others involved in the automotive fuel supply ecosystem. 

Higher Blends Also Under Discussion 

The issue comes as policymakers and industry participants discuss the possibility of introducing ethanol blends higher than E20. Concerns over chloride contamination and moisture have added to discussions around fuel specifications. 

The BIS is working on making the less than 3 ppm chloride limit compulsory. If implemented, the requirement would replace the current voluntary approach for this aspect of E20 fuel quality. 

Read MoreCentre Seeks District-Level Support from States to Accelerate LPG-to-PNG Transition! 

Conclusion 

The proposed change follows concerns over chloride levels and moisture in E20 petrol and their reported impact on some vehicle components. The government is considering making the existing contamination limit mandatory as ethanol-blended petrol use expands. 

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: Aug 25, 2026, 3:06 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.

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