E20, 22, 25, 27, 30, 85: Is your car or bike ready for ethanol-blended petrol? Here's all you need to know
In its latest push for ethanol-blended fuels, the Narendra Modi-led Central government has waived off excise duty on several variants, including E22, E25, E27 and
In its latest push for ethanol-blended fuels, the Narendra Modi-led Central government has waived off 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 blend. The waiver is aimed encouraging customers to move towards ethanol-blended petrol at a time when petrol and diesel prices have increased by a cumulative ₹7.5 per litre since the escalation of the West Asia conflict. In March, the central government had cut excise duty on petrol and diesel by ₹10/litre — foregoing over ₹1 lakh crore of annual revenue — in an attempt to cushion domestic customers from the surge in global crude oil prices. Recently, Union Petroleum and Natural Gas Minister Hardeep Singh Puri was seen announcing the roll out of E85, or petrol blended with 85% ethanol. As the government pushes for more ethanol-blended fuels, domestic customers grapple with certain queries — primarily if blended petrol would be cheaper than regular petrol, and how will it impact the efficiency of the vehicle engine. Here's all you need to know What is E22, E25, E27 and E30? E22 implies petrol blended with 22% ethanol. By volume, E22 consists of 78% petrol, on which appropriate excise duties have been paid; and 22% ethanol which invites Central, state/Union Territory or integrated taxes. Similarly, E25, E27, and E30 have 25%, 27% and 30% ethanol composition by volume.
On 20 May, the government had notified norms 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 mixing petrol with anhydrous ethanol, or ethanol which is completely free from moisture, for use in “positive ignition engine-powered vehicles”. It is important to note here that E22-E30 blends have only been notified by the ministry and have not been rolled out for retail as yet. Which is the most popular fuel blend in use at present? E20, or petrol blended with 20% ethanol, is the most widely available across fuel pumps in India owing to its mandatory usage starting 1 April 2026. Before that, E10 was the standard for years until 2022. It was in the year 2021 that NITI Aayog published its Roadmap for Ethanol Blending in India 2020-25, which advanced the E20 deadline from 2030 to 2025. In 2023, Prime Minister Narendra Modi launched E20 fuel at the India Energy Week and rolled it out at 84 petrol pumps across 11 states and Union Territories. Starting April 2023, all vehicles sold were mandated to be E20 compliant. In August 2025, the government stated OMCs (Oil Marketing Companies) have achieved an average ethanol blending of 19.93% had been achieved in July 2025 — nearly six months ahead of their target. How many vehicles are compliant with E20?
A Mint analysis of vehicle registration data from the transport ministry’s Vahan dashboard shows that fewer than 30% of petrol passenger vehicles and two-wheelers registered in 2025 were ethanol-compliant. About 9 lakh passenger vehicles were ethanol-compliant, against a total 30.36 lakh vehicles registered in 2025. Similarly, of the 13.76 crore two wheelers registered in 2025, only 50.2 lakh were compliant with E20 blends. But this is limited to 2025, when most vehicles sold were already equipped with E20-ready engines. Based on vehicle registration data for the last 15 years, assuming these vehicles are still on the road, ethanol-compliant vehicles account for only about 3% of passenger vehicles and two-wheelers. How does blended fuel impact vehicle mileage? According to a survey by LocalCircles, vehicles using blended fuels witnessed a notable drop in fuel efficiency. Of 24,710 surveyed, half of them reported that fuel efficiency has dipped in the last 9 months, with some saying that the mileage has reduced up to 20%. It also found that roughly one in every three car owner, who purchased their behicle before 2022, experienced unusual levels of wear and tear or need for repair in the last 9 months. Most vehicle owners experienced issues with their engine, fuel line, tank, carburettor, etc. Despite mounting public concern, the government remains steadfast in its transition toward even higher ethanol blends. Policymakers view the blending program as a cornerstone strategy to reduce India’s reliance on imported crude oil, lower vehicular emissions, and support agricultural sectors producing sugarcane and grain-based ethanol.
What is E85? How much does blended petrol cost? Oil Minister Hardeep Puri introduced the E85 fuel on 5 June at an Indian Oil Corp.’s outlet in New Delhi and said that it will initially be sold at 50 fuel stations across the country. More importantly, the E85 fuel will be priced ₹20 lower than E20 blend, the minister said. The table below shows how each of the variant is priced in Delhi at the moment Fuel Blend Ethanol Share (By Volume) Retail Price in Delhi (per litre) E20 20% ₹ 102.12 E22 22% Awaiting retail roll out E25 25% Awaiting retail roll out E27 27% Awaiting retail roll out E30 30% Awaiting retail roll out E85 85% ₹ 82.12 Whether blends from E22-E30 will be cheaper than the present E20 blend, will be clear once these variants are offcially rolled out for retail by the government and the OMCs. Earlier this month, Puri presented new E85-compatible variants of Hero MotoCorp Ltd.’s motorcycles and Maruti Suzuki India Ltd.’s Wagon R hatchback, indicating the government’s intent to help build a transport ecosystem to support higher ethanol use.
The BriefWire