New Delhi: The government is working on allowing a higher proportion of ethanol to be blended with petrol, with a greater focus on promoting flex-fuel vehicles, Prime Minister’s adviser Tarun Kapoor said.
Addressing the India Sugar and Bio-Energy Conference 2026 through videoconferencing, Kapoor said the country’s E20 programme has so far been “very successful”. Several automobile manufacturers have also announced plans to introduce flex-fuel vehicles in the Indian market.
Kapoor said the government was now examining the possibility of blending more than 20% ethanol in petrol. At the same time, the availability of pure ethanol at fuel stations would also need to be increased.
Referring to the ongoing crisis in West Asia and its impact on crude oil supplies, with prices approaching $100 per barrel, Kapoor stressed the need to make greater use of fuel resources available domestically.
He said India’s ethanol production capacity had now surpassed the quantity required for blending, making it necessary for the industry to explore additional uses for ethanol.
Kapoor also highlighted the potential use of biofuel-based additives and isobutanol in diesel. He urged ethanol manufacturers to diversify into other value-added products, including compressed biogas (CBG) and potash, to expand the sector beyond fuel blending.
