India’s Ethanol Blended Petrol Program Goes Back to 2003: E5 to E85 Timeline | Today’s news
India’s push for E20 vehicle fuel has drawn mixed reactions from across the country. Many have claimed that using E20 fuel instead of regular gasoline can cause the vehicle to malfunction or reduce mileage.
However, several industry experts dismissed the claims on Saturday (4 July), saying E20 petrol has been scientifically tested and is safe for vehicles.
On 5 June, India launched E85 fuel, a high-ethanol blend designed for flex-fuel vehicles ₹20 liter discount on regular petrol.
Read also | Bhutan does not accept E20 fuel, says “high probability of major engine problem if…”
While E20 fuel is a blend of 20 percent ethanol and 80 percent gasoline, E85 contains 80-85 percent ethanol and 14-19 percent gasoline and can only be used in flex-fuel vehicles capable of running on ethanol blends from E20 to E100.
India’s Ethanol Blended Petrol (EBP) program is not new. This dates back to 2003. The program started early with 5% EBPs in 20 states and 4 UTs in India.
Here’s the full timeline:
In August 2025, India’s Petroleum Minister Hardeep Singh Puri shed light on the program since Prime Minister Modi came to power in 2014. He said in 2014 ethanol blending was only 1.53 percent.
“By 2022, India has achieved 10 percent blending, five months ahead of schedule,” he said. Singh said the original target of 20 percent blending (E20) by 2030 has been pushed back to 2025.
Read also | Losing mileage with E20 fuel? Try these 6 fuel saving tips
“The country will now gradually move towards E25, E27 and E30 in a phased, calibrated manner with the support of BIS standards and fiscal incentives,” Singh said.
Read also | E20 petrol will not invalidate car insurance, government says
From E5 to E85
2001: India has started blending ethanol into gasoline on a pilot basis.
2003: The Ethanol Blended Petrol (EBP) program was launched.
2006: The Ministry of Petroleum and Natural Gas has directed public sector oil marketing companies (OMCs) to sell 5% EBP (E5) in 20 states and 4 UTs.
“Although the program started early, it faced many inherent challenges leading to slow uptake and growth. However, the program was not successful,” the government said in its report.
2014: Reintroduced the regulated price mechanism for ethanol, which will be procured under the EBP program. “The alternative route open for ethanol production (2nd generation including petrochemicals) has mandated oil PSEs to set up biorefineries,” the report said.
2014–15: Streamlined Tendering – Multiple EOIs, Shipping Plates and Rates.
May 2016: 14 May 2016 Amendment to the IDR Act to clarify the roles of the Central and State Governments for the continuous supply of ethanol to be blended with petrol under the EBP program
Read also | “Gadkari promised petrol…”: Tehseen Poonawalla questions E20 fuel prices
2016–17: Interact regularly with states and all other stakeholders to resolve issues related to the EBP program – This is an ongoing process.
June 2018: Forward-looking and updated National Policy for Biofuels – 2018 announced, involving all stakeholders
July 2018: Interest subsidy program to improve and increase ethanol production capacity in the country. The government will provide interest (interest subsidies) for a period of 5 years. GST on ethanol reduced from 18% to 5%.
2018–19: Permitted conversion of heavy B molasses, sugar cane juice and damaged food grains to ethanol. A fixed differentiated price of ethanol from the plant and the acquisition of raw materials used for the production of ethanol is preferred. Marked start of differentiated price of ethanol based on feedstock used for ethanol production.
April 2019: Extension of EBP program to all India except island UTs of Andaman Nicobar and Lakshadweep Island
September 2019: Introduced new sources of sugar and sugar syrup for the production of ethanol at a fixed price
October 2019: Posted “Ethanol Purchase Policy on a Long-Term Basis under the EBP Program”
August 2020: One-time registration of ethanol suppliers for a long time, including visibility of ethanol demand for 5 years
September 2020: OMCs have started providing offtake guarantee and agreement to sign a tripartite agreement with ethanol suppliers and bankers to support ethanol capacity expansion projects.
October 2020: Further facilitation of procurement conditions by OMCs such as one-time submission of documents, quarterly bank guarantees, multiple freight tariffs and freight rates linked to the Retail Selling Price (RSP) of diesel, reduction in security deposit and applicable non-delivery penalty etc.
Approval of the National Biofuel Coordinating Committee (NBCC) to utilize surplus rice stocks lying with the Food Corporation of India (FCI) for release to distilleries for ethanol production.
November 2020: NBCC approval to use corn for ethanol production. Interest Subsidy Scheme for Increasing and Expanding Ethanol Production Capacity Extended to Grain-Based Distillers.
December 2020: OMCs have increased their ethanol storage capacity from 5.39 million liters in November 2017 to 16.9 million liters by December 2020, providing ethanol storage coverage of more than 20 days in their warehouses. The amount spent by OMC is around 200 million crores – this is an ongoing process.
June 2021: NITI Aayog Releases Report on “Ethanol Blending Plan in India 2020-25”
April 2022: The government has reached its milestone of blending 10% ethanol (E10) across the country.
March 2025: India formally achieves the 20% ethanol blending target, five years ahead of the original 2030 timeline.
April 1, 2026: A nationwide mandate went into effect requiring all retail gas stations to sell only E20 gasoline.
June 2026: Hardeep Singh Puri launched E85 fuel at IndianOil retail outlet in New Delhi on the occasion of World Environment Day 2026. The price of E85 is almost ₹20 per liter lower than regular petrol.
The rollout begins at 48 public sector (RO) OMC retail outlets in the country, giving flex-fuel vehicle users access to this cleaner fuel. The initiative is planned for nationwide expansion.
Read also | E20, 22, 25, 27, 30, 85: Everything you need to know about Indian ethanol fuel
“The same would increase up to 500 RO by December 2026 and about 5,000 RO by December 2027 and help increase India’s ethanol aggregate blending rate to nearly 26 per cent by 2030-31,” the government said in a press release dated May 5.
While India has made significant progress with its E20 blending program, the move to higher blends such as E85 (85% ethanol) and E100 (pure ethanol) is creating a significant increase in demand, estimated to be three to five times higher than current requirements.
