New Delhi, Delhi
The government is preparing for the next phase of the country’s ethanol blending programme. Prime Minister’s Economic Advisory Council member Tarun Kapoor has indicated that the government is working on allowing higher ethanol blending in petrol beyond the current E-20 level. To make this possible, he highlighted the need to promote flex-fuel vehicles and increase the availability of pure ethanol at fuel retail outlets.
Addressing the fourth edition of the India Sugar and Bio-Energy Conference 2026 virtually, Kapoor said that the country’s E-20 programme has been “very successful” so far. He also noted that several automobile manufacturers have already announced plans to introduce flex-fuel vehicles in the market soon.
Government Eyes Ethanol Blending Beyond E-20
Tarun Kapoor said the government is now focusing on flex-fuel vehicles and is working towards permitting ethanol blending levels higher than E-20. This means that policy measures could be developed to make petrol with higher ethanol content available for vehicles designed to use such fuels.
However, the transition would require preparations on both the vehicle and fuel-supply sides. Kapoor said that along with increasing the number of flex-fuel vehicles, the availability of pure ethanol at fuel retail outlets would also need to be expanded. This would help create better coordination between the demand and supply of higher-ethanol fuels.
Government Also Exploring Biofuels in Diesel
Apart from petrol, the government is also exploring the potential use of biofuels in the diesel sector. Work is underway on the use of biofuel-based additives in diesel as well as other related experiments.
At the same time, efforts are continuing to promote bio-energy through the GOBARdhan scheme. Encouraging energy production from organic waste and other available resources is an important part of this strategy.
West Asia Crisis Raises Energy Security Concerns
Kapoor highlighted the importance of biofuels amid the ongoing crisis in West Asia. According to him, the regional crisis has created disruptions in energy supplies, while crude oil prices have risen to around $100 per barrel. There are also concerns that prices could rise further.
Crude oil plays a crucial role in India’s economy, and the country imports a significant portion of its energy requirements. Promoting domestically produced biofuels could therefore play an important role in strengthening India’s energy security.
In the next phase of the government’s strategy, greater focus is likely to be placed on ethanol blending beyond E-20, the availability of flex-fuel vehicles, and the distribution infrastructure required for pure ethanol.


