Overview
- Oil companies must now supply petrol with up to 20 percent ethanol that meets Bureau of Indian Standards rules and a minimum 95 Research Octane Number.
- Officials cast the policy as an energy security step as crude prices rise and routes from West Asia face risk, with India importing nearly 90 percent of its oil and much of it moving through the Strait of Hormuz.
- Most cars and two-wheelers sold since 2023 are built for E20, while many older models may see a 3 to 7 percent drop in mileage and faster wear of rubber and plastic parts, though industry bodies say the fuel is safe.
- Experts say the blend can lower carbon monoxide and hydrocarbons but may increase nitrogen oxides and acetaldehyde, and higher volatility in heat can drive more fuel evaporation.
- Demand for ethanol is tightening supply for pharmaceuticals, chemicals and beverages, and the government has indicated temporary exemptions could apply in specific regions or circumstances.