
India is increasingly focusing on alternative fuels as part of its broader energy strategy, with Nitin Gadkari advocating for a transition towards 100% ethanol blending., as per The Economic Times report.
With a heavy reliance on imported crude oil and rising global uncertainties, policymakers are examining the feasibility of achieving complete ethanol blending in petrol.
This shift aligns with ongoing efforts to diversify energy sources and reduce dependence on fossil fuels.
The government is considering a move towards 100% ethanol blending in petrol in the coming years. The proposal has gained attention in light of global supply disruptions and geopolitical tensions, particularly in oil-producing regions. Increasing ethanol use is seen as a way to strengthen domestic energy resilience.
India currently imports a significant portion of its crude oil requirements, accounting for roughly 87% of total consumption.
This reliance exposes the economy to price volatility and supply risks. Expanding ethanol blending could help mitigate these challenges by lowering the need for imported fossil fuels, as per the news report.
Recent policy initiatives have supported the transition towards alternative fuels. Petrol with 20% ethanol blending was introduced in 2023 as part of a phased approach.
In addition, upcoming Corporate Average Fuel Efficiency (CAFE III) standards, set to be implemented from April next year, are expected to influence vehicle emissions and fuel consumption patterns. These regulations are likely to have limited impact on electric and flex-fuel vehicles.
Alongside ethanol, other alternative energy sources are being explored. Biofuels remain a key focus area due to their domestic availability and compatibility with existing infrastructure.
Green hydrogen is also being identified as a potential long-term solution for cleaner energy, particularly in sectors where electrification may be challenging.
Achieving full ethanol blending would require significant adjustments in supply chains, agricultural output, and vehicle compatibility. Increased production capacity, distribution infrastructure, and technological adaptation will be essential to support such a transition at scale.
Read More: Govt Evaluates Ethanol as an Alternative Cooking Fuel for Commercial Kitchens.
India’s consideration of 100% ethanol blending reflects a broader effort to enhance energy security and reduce external dependencies. While progress has been made through incremental blending targets, achieving full adoption will depend on coordinated policy measures, infrastructure readiness, and sustained investment in alternative fuels.
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 or 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.
Published on: Apr 22, 2026, 10:10 AM IST

Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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