India Mandates 20% Ethanol Blended Petrol from April to Curb Oil Imports; Praj, Balarampur, Dalmia and Others in Focus

The Government, as per recent reports, has issued a notification that all oil companies must sell petrol blended with up to 20% ethanol and a minimum Research Octane Number of 95 across every state and Union Territory starting April 1, 2026. 

Key Details of the 20% Ethanol Petrol Mandate 

The oil ministry’s February 17 notice states that ethanol‑blended motor spirit must meet Bureau of Indian Standards specifications for 20% ethanol content and must not fall below RON 95. 

Exceptions may be granted for special circumstances, specific regions or for a limited period. Ethanol is produced from sugarcane, maize or other grains and carries a natural octane rating of around 108, which helps achieve the required knock resistance. 

Key Stocks in Focus 

Integrated sugar and distillery players (sugarcane route) and grain-based distillers, because the mandate directs oil companies to sell E20 nationwide from April 1, 2026, which lifts structural ethanol offtake. 

Praj Industries, Balrampur Chini, Triveni Engineering, Dalmia Bharat Sugar, Dwarikesh Sugar, Bannari Amman Sugars, Shree Renuka Sugars are the key stocks in focus. 

Impact on Vehicles 

Vehicles manufactured between 2023 and 2025 are designed to run on E20 fuel, so no major compatibility issues are expected. Older models may experience a modest reduction in mileage of 3% to 7% and could see slightly increased wear on rubber and plastic components.  

The RON 95 requirement is intended to protect engines from knocking and related damage. 

Read More: India’s Ethanol Boom Hits a Speed Bump: 20 Billion Litres of Capacity vs 11 Billion Litres of E20 Demand! 

Benefits for Farmers and Environment 

Higher ethanol demand boosts the market for sugarcane, maize and surplus agricultural produce, providing additional income for farmers. Ethanol’s cleaner combustion reduces carbon emissions compared with pure petrol, supporting the country’s climate goals.  

Since the 2014‑15 fiscal year, the blending programme has saved more than ₹1.40 lakh crore in foreign‑exchange by substituting imported oil. 

Implementation and Exceptions 

Oil companies are required to adjust their supply chains to meet the new specifications. The government retains the authority to allow temporary relaxations in regions where feedstock availability or logistical constraints arise. Monitoring will be carried out by the oil ministry in coordination with state authorities. 

Conclusion 

The April 1, 2026 mandate introduces up to 20% ethanol in petrol with a minimum RON of 95, aiming to reduce oil imports, lower emissions and support agricultural producers. The policy includes provisions for limited exceptions and targets vehicles produced from 2023 onward. 

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