ETHANOL FUEL POLICY
India seeks to cool war’s oil burn with flex-fuel shift
India is gearing up to fast-track the integration of flex-fuel vehicles into its automotive landscape. These innovative cars are capable of using higher blends of ethanol, paving the way for decreased dependence on imported oil. As the global oil markets grapple with instability stemming from geopolitical conflicts, this initiative is timely.
Delhi EV registrations rise 29%, petrol vehicles retain dominance
Delhi's electric vehicle registrations surged by 29 percent in 2025-26. Petrol vehicle registrations also increased, showing a mixed market. Experts anticipate further EV growth due to new policies and incentives. The government is promoting electric mobility with scrappage benefits and tax exemptions. Overall vehicle demand in Delhi saw robust growth.
Stoves to cars: India expands ethanol use amid West Asia war
India has a massive surplus of ethanol, pushing policymakers and industry to find new uses. Ethanol-powered cooking stoves are being tested. Blending with diesel for generators is also under consideration. Flex-fuel vehicles are ready, but higher taxes and fuel availability hinder adoption. Incentives are needed to boost demand and resolve this supply-demand imbalance.
E20 petrol now the main fuel in India from April 1. What this big shift means, and can your car handle ethanol-blended fuel?
India has mandated E20 petrol, a blend of 20% ethanol and 80% petrol, across the nation from April 1, 2025. This initiative aims to reduce crude oil imports, boost energy security, and support agriculture. While newer vehicles are largely compatible, older models may see minor efficiency drops.
India weighs faster rollout of flexible-fuel vehicles as ecosystem gaps, mileage concerns persist
India is on a mission to promote flexible-fuel vehicles as a means to enhance energy independence and minimize pollution. With the technology in place, the spotlight is shifting towards establishing a robust support framework. Discussions among auto manufacturers and government representatives are underway to assess how these vehicles can become consumer-friendly.
Every $10 rise in crude may add 60 bps to India's inflation: CareEdge Global
Rising crude oil prices due to West Asian tensions could significantly push up India's inflation by 55-60 basis points per $10 barrel increase in FY27. This could also widen the current account deficit and pressure the Indian rupee, though strong domestic demand and policy flexibility offer some resilience.
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Gas price twist: Emergency E15 waiver could change what you pay at the pump
US gas price relief measures explained: The Trump administration is temporarily allowing the sale of E15 fuel, a blend with 15% ethanol, from May 1 to May 20 to offer relief at the pump amid rising gas prices. While intended to ease pressure, experts suggest its impact will be limited, affecting fewer than 5% of stations and offering only a slight price reduction.
Delhi EV policy explained: Up to Rs 1 Lakh incentive, 100% exemption on road tax till 2030 to boost clean mobility
Delhi Electric Vehicle policy explained: The Delhi government is set to introduce a new policy aimed at accelerating electric vehicle adoption by offering financial incentives for scrapping old vehicles. Under the scheme, individuals who scrap BS-IV or older Delhi-registered vehicles can avail the benefits of up to ₹1 lakh when purchasing new EVs, along with exemptions on road tax and registration fees until 2030.
India's ethanol moment has arrived — and the industry says it's ready for more
India has mandated 20% ethanol in petrol from April 2026, a significant policy acceleration. The nation boasts surplus production capacity, offering a strategic energy buffer amidst global oil price volatility. This move bolsters farmer incomes and reduces foreign exchange outgo, with the industry now eyeing further expansion into aviation fuel and cooking gas.
These large- and mid-cap stocks with ‘Strong Buy’ & ‘Buy’ recos can rally over 23%, according to analysts
For the last few days, the news tickers of business channels have carried this news: 40 out of the Nifty 50 stocks have ended in the red. Given how the international situation is panning out, we will likely see more such headlines. In such a situation, one needs to think and act. As a first step, you could bring stocks onto your watchlist. But that does not mean you do nothing at all after that. You need to act when the time is right.
Meet up with a new flame: LPG crisis shows why India must scale ethanol for cooking
Restaurants are running out of cooking gas. This crisis reveals a deeper vulnerability in cooking fuel. Domestic ethanol production offers a viable, clean alternative. Ethanol can be used for cooking, reducing import dependence. Policy changes are needed to integrate ethanol into cooking fuel programs. This domestic solution addresses a critical national need.
Tech, policy, human behaviour to shape India's mobility future: NITI Aayog member V K Saraswat
India and Japan are joining forces to shape the future of mobility. Combining India's vast market and digital prowess with Japan's advanced technology, the partnership aims for co-creation in areas like hydrogen mobility and smart transport. This collaboration will accelerate sustainable solutions, addressing India's large population and logistics needs.
Trump on rising gas prices in US during Iran operation: 'If they rise, they rise'
President Donald Trump is not concerned about rising gas prices due to the Iran conflict. He believes fuel costs will decrease rapidly once the military operation concludes. White House officials are exploring options to manage energy prices, but the administration is betting on the conflict's short duration. Trump has ruled out using the Strategic Petroleum Reserve for now.
US-Israel-Iran war: 11 stocks that may face strong headwinds; and 11 that could see fresh tailwinds emerge
Trouble in the Middle East was expected as the US had been building up its presence in the Gulf. But the fact that it came unannounced on a weekend could cause a sharp reaction when the market opens on Monday. Yes, there will be some sectors where businesses will be hit. But for others the hit will be due to market sentiment more than anything else. Also, one must differentiate between the first-level impact on the business and the second level of impact. Investors who understand the transmission mechanisms, distinguish between temporary panic and structural damage, and act with discipline rather than emotion stand to benefit.
Ethanol glut hits India: Excess capacity clouds Rs 50,000 crore green fuel industry
India's green energy dream is facing a challenge. The country has built massive ethanol production capacity, but demand for blending with petrol is falling short. This excess capacity threatens investments and farmer incomes. Policymakers are now grappling with how to increase blending targets and explore new avenues like diesel blending to utilize the surplus.
No question of ethanol inclusion in India-US deal: ISMA’s Deepak Ballani
Ethanol is explicitly excluded and limited US farm imports will not disrupt domestic markets, says Deepak Ballani, Director General, ISMA.
Economic Survey 2026: Ethanol push risks squeezing pulses, oilseeds
India's ethanol program has saved billions in foreign exchange. However, government policies favoring maize for ethanol are pushing farmers away from vital pulses and oilseeds. This shift raises serious concerns about the nation's food security and nutritional needs. The Economic Survey highlights this growing tension between energy self-reliance and food stability.
Fuel fight brews as ethanol lobby wants blend boost
The ethanol lobby is pushing for a 1-2% increase in blending beyond the current 20% mandate, citing idle industry capacity. Automakers, however, are resisting, pointing to reduced fuel efficiency with higher blends. The government's E20 mandate has faced criticism for increased production costs and no consumer price benefits.
SC dismisses PIL seeking nationwide E20 petrol availability, ethanol labeling
The Supreme Court has dismissed a petition about ethanol-blended petrol. The petition requested non-ethanol fuel availability and ethanol content labeling. Advocate Akshay Malhotra clarified his support for the ethanol policy but wanted consumer choice. The Attorney General opposed the plea, highlighting benefits for sugarcane farmers. Concerns were raised about engine compatibility and fuel efficiency with E20 fuel.
Ethanol Blending: Better? Cheaper? Greener? Are you serious!
India's ambitious ethanol blending mandate, aiming for E27 fuel, faces scrutiny due to potential mileage losses and hidden costs for consumers. While benefiting farmers and reducing import bills, the initiative raises concerns about vehicle compatibility, environmental impact, and transparency. Experts suggest a more cautious approach, prioritizing electric vehicles and bio-blends for mass transportation.
Government lifts cap on sugar diversion for ethanol production starting in November 2024
Starting November 1, 2024, the Union government will lift the cap on sugar diversion for ethanol production, allowing the use of cane juice, syrup, and various molasses types. Additionally, distilleries can now purchase up to 2.3 million metric tons of rice from the Food Corporation of India for ethanol. This policy aims to boost renewable energy while maintaining stable sugar availability. The Department of Food and Public Distribution and the Ministry of Petroleum and Natural Gas will oversee the impact on sugar supplies.
Working on policy for setting up ethanol pumps: Nitin Gadkari
Nitin Gadkari said that there is a requirement of 1000 crore litre of ethanol if we blend it with petrol by up to 20%. “Now Bajaj, Hero, and TVS have motorcycles ready that can run on 100% bioethanol. We can also have auto rickshaws that run on it,” he said.
Government promoting ethanol production in a big way: Nitin Gadkari
Addressing a webinar on alternative fuels organised by industry body ISMA, the minister said the government is promoting ethanol manufacturing in a big way and assured that it will procure all ethanol produced in the country. With increased supply of ethanol, Gadkari said the government plans to introduce flex fuel engine vehicles in the country.
Govt may issue guidelines for 'flex-fuel' vehicles by October
New guidelines for use of flexible fuel vehicles (FFVs) using flex engines is expected to be issued by the third quarter of current year (FY22) that would specify engine configuration and other changes required in vehicles to conform to stipulated changes in fuel mix.
Ethanol blending to go up to 22.5%, says Nitin Gadkari
"If we start making ethanol from bamboo in North-East, lakhs will get employment and several industries will come up," Gadkarisaid.
New 'larger' policy on ethanol blending in a month: Nitin Gadkari
"We will come out with a larger policy on ethanol (blending) within a month," Gadkari said at a conference on sustainability.
Don’t ignore biofuels
Despite low oil prices, govt shouldn't go slow on biofuels policy.
Wanted: An ethanol policy
The broad contours of the national policy on biofuels — which has got the green signal from the Cabinet — seem unexceptionable.
Ethanol: Fuel at the expense of food?
Brazil faces the prospect of jeopardising its food economy owing to the avarice for lucrative biofuel biz. India also needs to be extra careful while making policies.
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