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Government in talks with auto industry to make E25 petrol standard in 2 to 3 years

By Shivani Singh
Last updated: May 30, 2026
5 Min Read
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According to sources cited by CNBC-TV18, the Indian government is actively discussing a roadmap to introduce E25 petrol as the country’s next standard fuel blend. Consultations are currently underway between the government and the automotive industry, with a possible 2-3 year timeline being considered Transition from current E20 petrol.

The discussion comes just days after the Bureau of Indian Standards (BIS) notified fuel specifications for high ethanol blends including E22, E25, E27 and E30 petrol. While the notification does not mandate the immediate rollout of these fuels, it lays the foundation for future adoption and signals the government’s intention to move beyond E20.

Credit CNBC TV18
Credit CNBC TV18

E25 monofuel strategy being evaluated

Sources say that the government is exploring the possibility of this E25 is being adopted as India’s standard petrol blend across the country. Under this approach, E25 could eventually become the default gasoline available at fuel stations, replacing the current E20 blend. The Heavy Industries Ministry is understood to be in consultation with vehicle manufacturers and industry stakeholders regarding this change. A timeline of two to three years is reportedly being evaluated, although no formal announcement has been made.

Driven by efforts to reduce dependence on imported crude oil and improve energy security, India’s ethanol blending program has progressed rapidly in recent years. The emphasis on higher ethanol usage comes amid volatility in global oil markets and geopolitical uncertainties impacting crude oil prices.

Auto industry wants additional testing

While automakers support the comprehensive ethanol roadmap, they are asking for additional time to evaluate vehicle compatibility. According to CNBC-TV18’s sources, the industry has requested about six months for testing and validation before introducing E25.

The Automotive Research Association of India (ARAI) is currently working on testing protocols and evaluation metrics for vehicles running on high ethanol blends. Manufacturers will need to assess the impact of E25 on engine performance, emissions, fuel system durability and long-term reliability before the fuel is introduced nationwide.

Concern about existing vehicles

A major concern raised during the consultation relates to large number of old vehicles Currently on Indian roads. While most newly launched vehicles are now engineered to support E20 petrol and many manufacturers have begun preparing even more ethanol blends, older vehicles may face compatibility challenges. Components such as fuel lines, seals and engine calibration systems may not be optimized for increased ethanol content.

The industry reportedly Highlights the need for widespread testing and consumer awareness before nationwide changes begin. Another concern relates to fuel efficiency. Ethanol has a lower energy density than petrol, meaning vehicles typically consume slightly more fuel to achieve the same performance and range. This may have a greater impact on older vehicles that are not specifically designed for higher ethanol blends.

Automakers Are Already Preparing for High Ethanol Fuel

The automotive industry has already begun developing products that are capable of operating at significantly higher ethanol blends. Over the past few years, several manufacturers have showcased flex-fuel vehicles in India. Minister Gadkari recently announced that Maruti will launch its first flex fuel car on June 5. These developments suggest that producers are preparing for a future where ethanol volumes could increase significantly above current levels.

The next phase of India’s ethanol journey

The ongoing consultation around E25 indicates that India is preparing for the next phase of its ethanol blending programme. While E20 remains the current standard, recent BIS notification and government-industry discussions point to a gradual move towards higher ethanol blends in the coming years. The pace of implementation will depend on vehicle testing results, infrastructure readiness and industry response. If approved, E25 could become India’s next standard petrol The mix, within the next two to three years, will further strengthen the country’s progress towards energy security and reduce dependence on imported fossil fuels.

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