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September 9, 2026 – India is preparing to authorize ethanol blending levels above E20, enabled by the introduction of flexi-fuel vehicles, according to Tarun Kapoor, Advisor to the Prime Minister, speaking at the fourth edition of the India Sugar & Bio-Energy Conference 2026.
Kapoor noted that the E20 program has been “very successful,” with multiple automakers set to launch flexi-fuel vehicles in the coming months. The government’s next focus is to allow higher blending percentages—beyond the current 20% ethanol-gasoline mix—by ensuring that pure ethanol becomes available at fuel stations alongside the rollout of these vehicles.
Why the push now? The West Asia crisis has disrupted oil supplies, pushing crude oil prices near $100 per barrel and raising fears of further increases. Kapoor stressed that leveraging domestic biofuels is critical to reduce reliance on imported crude. “It is important that we try to have whatever is available in the country,” he said.
India’s ethanol production capacity now exceeds blending requirements, creating a surplus that the industry must find new ways to utilize. Kapoor urged producers to explore additional applications for ethanol and to diversify into compressed biogas (CBG) production under the new GOBARdhan scheme, which consolidates incentives from multiple ministries to accelerate CBG adoption.
Addressing skepticism. Recent criticism of E20 blending, particularly concerns about fuel efficiency and engine performance, was dismissed by Kapoor as driven by misinformation or “motivated reasons.” He cited studies showing that E20 performs well, with any marginal loss in fuel economy offset by higher octane content, which can improve engine efficiency under certain conditions.
Diesel segment also in focus. Kapoor revealed that the government is experimenting with biofuel-based additives for diesel, specifically isobutanol. If successful, this could open a “large” new avenue for biofuels, given that diesel accounts for a significant share of India’s refinery output. The initiative aligns with global trends, where the U.S. and Brazil are already testing isobutanol blends in heavy-duty vehicles.
Global context. India’s move mirrors broader biofuel expansion in emerging economies. According to the International Energy Agency (IEA), global ethanol consumption is projected to grow by 12% over the next five years, driven by policy mandates in India, Brazil, and parts of Southeast Asia
