E20, 22, 25, 27, 30, 85: Is your car or bike ready for gasoline with ethanol added? Here’s everything you need to know | Today’s news
In its latest push for ethanol fuels, the Narendra Modi-led central government has waived excise duty on several variants, including E22, E25, E27 and E30.
Essentially, this means that excise duty will be “nil” on petrol with 22%, 25%, 27% and 30% ethanol blends.
The goal of the exemption is to encourage customers to switch to gasoline with ethanol at a time when gasoline and diesel prices have risen cumulatively. ₹7.5 per liter since the escalation of the West Asian conflict.
In March, the central government reduced the excise duty on petrol and diesel ₹10/litre – above ₹1,000,000,000,000,000,000 in annual revenue – in an effort to cushion domestic customers from a sharp rise in global oil prices.
Recently, Union Petroleum and Natural Gas Minister Hardeep Singh Puri was seen announcing the introduction of E85 or petrol blended with 85% ethanol.
As the government pushes for more ethanol-laced fuels, domestic customers are grappling with some questions — primarily whether blended gasoline would be cheaper than regular gasoline, and what impact it will have on vehicle engine efficiency. Here’s everything you need to know:
What is E22, E25, E27 and E30?
E22 stands for gasoline blended with 22% ethanol. By volume, E22 consists of 78% gasoline on which the appropriate excise taxes have been paid; and 22% ethanol which requires central, state/union territory or integrated taxes.
Similarly, E25, E27 and E30 have a composition of 25%, 27% and 30% ethanol by volume.
On May 20, the government announced standards for E22, E25, E27 and E30 fuel blends.
In its notification, the Bureau of Indian Standards (BIS) laid down specifications for fuel blends made by blending petrol with anhydrous ethanol or ethanol that is completely free of moisture for use in “petrol engine powered vehicles”.
It is important to note here that the E22-E30 blends have only been announced by the Ministry and have not yet been released to the retail market.
What is the most popular fuel mixture at the moment?
E20, or petrol blended with 20% ethanol, is the most common at fuel pumps in India due to its mandatory use from 1 April 2026.
Before that, E10 was standard for years until 2022.
It was in 2021 that NITI Aayog released its India Ethanol Blending Plan 2020-25, which pushed the E20 deadline from 2030 to 2025.
In 2023, Prime Minister Narendra Modi launched E20 fuel at the India Energy Week and launched it at 84 petrol pumps across 11 states and Union Territories. From April 2023, all vehicles sold were required to meet E20 requirements.
In August 2025, the government said OMCs (Oil Marketing Companies) had achieved an average ethanol blending of 19.93% in July 2025 – almost six months ahead of their target.
How many vehicles are E20 compatible?
A coin analysis of vehicle registration data from the Department of Transport’s Vahan dashboard shows that less than 30% of petrol cars and two-wheelers registered in 2025 were ethanol compliant.
About 9,000,000 passenger vehicles were ethanol-compatible, compared to a total of 30,36,000,000 vehicles registered in 2025. Similarly, of the 13.76 million two-wheelers registered in 2025, only 50.2000 million were E20-compliant.
However, this is limited to 2025, when most vehicles sold were already fitted with E20-ready engines. Based on vehicle registration data for the past 15 years, assuming these vehicles are still on the road, ethanol-compatible vehicles represent only about 3% of passenger cars and two-wheelers.
How does blended fuel affect vehicle mileage?
According to a survey by LocalCircles, vehicles using mixed fuels have seen a significant drop in fuel consumption.
Of the 24,710 surveyed, half said their fuel consumption had fallen over the past 9 months, with some reporting a mileage reduction of up to 20%.
It also found that roughly one in three car owners who bought their vehicle before 2022 had experienced unusual levels of wear and tear or needed repairs in the past 9 months. Most vehicle owners have had problems with the engine, fuel line, tank, carburetor, etc.
Despite growing public concern, the government remains steadfast in its move to even higher ethanol blends. Policymakers see the blending program as a key strategy to reduce India’s dependence on imported crude oil, reduce vehicle emissions and boost agricultural sectors producing sugarcane and grain-based ethanol.
What is E85? How much does blended gasoline cost?
Petroleum Minister Hardeep Puri launched the E85 fuel on June 5 at the Indian Oil Corp. in New Delhi and said it will initially be sold at 50 petrol stations across the country.
More importantly, E85 fuel will be affordable ₹20 lower than the E20 blend, the minister said.
The table below shows how the prices of each variant are currently in Delhi:
Fuel Blend Ethanol share (by volume) Delhi retail price (per litre) E2020 % ₹102.12E2222%Awaiting Retail ReleaseE2525%Awaiting Retail ReleaseE2727%Awaiting Retail ReleaseE3030%Awaiting Retail ReleaseE8585% ₹82.12
Whether the E22-E30 blends will be cheaper than the current E20 blend will be clear once the government and OMC officially introduce these variants for retail.
Earlier this month, Puri unveiled the new E85 compatible variants of Hero MotoCorp Ltd. motorcycles. and Maruti Suzuki India Ltd.’s Wagon R hatchback, indicating the government’s intention to help build a transportation ecosystem to support higher ethanol consumption.
According to Puri, the government is considering policy measures to accelerate the introduction of hybrid vehicles. By the end of the year, the fuel will be available at up to 500 gas stations, he said.
