Overview
- The government told Parliament on Monday that tests by state oil firms, accredited labs and automakers showed ethanol‑blended diesel failed the required flash‑point specification because ethanol lowered the flash point sharply.
- A lower flash point means diesel can ignite more easily during handling, storage and transport, which is why authorities have decided to rule out ethanol‑diesel blending for now.
- E20 petrol (about 19–20% ethanol) remains the approved standard and institutional lab and field trials by ARAI, SIAM, IIP, OMCs and manufacturers found it safe under prescribed standards.
- There is no current policy to introduce ethanol as a household cooking fuel, though officials say ethanol is being explored as a possible future option to cut LPG imports and use surplus production capacity.
- State OMCs’ large 2025–26 tender for about 10.5 billion litres drew offers of roughly 17.6 billion litres, leaving a supply surplus that drives interest in new outlets but means further technical work is needed before any expansion beyond 20% petrol blending.