India May Allow Consumers to Choose E20, E22, E25 and E30 Petrol Based on Vehicle Compatibility: Report

Petrol pumps across India may soon offer multiple ethanol-blended petrol variants, allowing consumers to choose fuel based on their vehicle's compatibility, according to a report by Mint. 

The government has reportedly asked fuel retailers, including Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Jio-bp, Nayara Energy and Shell, to begin preparations for dispensing E20, E22, E25 and E30 petrol grades. 

Rollout Linked to New Fuel Standards 

The development follows the Bureau of Indian Standards' introduction of specifications for higher ethanol blends. It also comes after the Centre proposed allowing fully ethanol-powered vehicles earlier this year. 

Sources cited in the report said fuel stations would be required to install separate dispensing arrangements, blending controls, and fuel quality monitoring systems. Different fuel variants would also need to be clearly labelled at retail outlets. 

Infrastructure Changes Expected 

India has around 100,000 fuel stations, of which nearly 90,600 are operated by state-run oil marketing companies. Industry representatives indicated that existing infrastructure may be adapted for higher ethanol blends without major structural changes. 

Fuel station operators noted that dispensers already handle multiple products, including diesel, regular petrol, and premium petrol. Similar arrangements could be used for additional ethanol-blended fuel grades. 

Surplus Ethanol Capacity Supports Move 

The proposal comes as ethanol production continues to outpace current blending requirements. India had produced around 20 billion litres of ethanol by March 2026, while demand under the existing 20% blending programme is estimated at about 11 billion litres. 

Industry groups have been pushing for blending levels beyond E20, citing available production capacity and the need to reduce reliance on imported crude oil. 

Savings and Import Dependence 

According to government data cited in the report, ethanol blending helped India save ₹1.7 trillion between November 2014 and February 2026. Carbon emissions were reduced by 87 million tonnes during the period. 

In the ethanol supply year 2024-25, savings from replacing imported crude oil exceeded ₹40,000 crore. India imported crude oil worth $123.1 billion in FY26, compared with $137 billion in the previous financial year. 

Read More: Maharashtra Approves ₹89,731 Crore Mega Projects to Boost Industrial Growth! 

Conclusion 

The proposal is still at the preparation stage, with fuel retailers being asked to develop the necessary dispensing and storage infrastructure. If implemented, consumers could have access to multiple ethanol-blended petrol options at fuel stations based on vehicle requirements. 

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