Overview
- The government told Parliament on Monday that laboratory and field tests found ethanol lowered diesel’s flash point enough to raise fire and handling risks, so ethanol will not be blended into diesel for now.
- Officials said tests of petrol with up to 20% ethanol (E20) have met prescribed standards and shown no verified widespread engine failures, but any move above 20% will wait for more scientific study and stakeholder consultation.
- State-run oil marketing companies earlier this year launched large tenders to buy ethanol and have allocated about 10.485 billion litres to suppliers as domestic capacity expanded.
- The administration confirmed there is no policy to approve or mandate ethanol as a household cooking fuel while the LPG Equipment Research Centre and others continue research on ethanol-based cooking options.
- The decision removes diesel as an outlet for surplus ethanol and shifts focus to technical fixes, further tests, and industry talks before policymakers consider new uses or higher petrol blends.