India may slow E25 petrol rollout as concerns over mileage and older vehicles grow: Report

India may slow down its planned transition to petrol blended with 25 per cent ethanol (E25) as policymakers weigh concerns over lower fuel efficiency, compatibility with older vehicles and the pace of the country's ethanol-blending programme, The Indian Express reported on Tuesday.

The Centre is learnt to be favouring a calibrated rollout of E25 — fuel containing 75 per cent petrol and 25 per cent ethanol — rather than a rapid nationwide introduction, the report said. The move would give automakers, fuel retailers and consumers more time to adapt, particularly after the accelerated rollout of E20 petrol across the country.

The rethink comes even as the government continues to promote ethanol blending as a key pillar of India's energy security strategy, aimed at reducing crude oil imports, cutting emissions and boosting demand for domestically produced ethanol.

Why the government is reconsidering E25

According to The Indian Express, senior government officials discussed the issue last week after reviewing concerns raised by vehicle owners and automobile manufacturers over the transition to higher ethanol blends.

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"There is a view (within the government) that the transition beyond E20 will need to be spaced out. That is the sense we have got from vehicle manufacturers too. The idea is to go to E25 in a calibrated, graded manner for existing vehicles," a senior government official told the newspaper.

While no formal timeline has been announced for E25, recent policy decisions had signalled that the government was preparing for the next stage of ethanol blending. The Centre recently exempted petrol containing between 22 and 30 per cent ethanol from excise duty, and the Bureau of Indian Standards (BIS) notified specifications for these higher ethanol blends.

Those moves had led to expectations that E25 could follow soon after the nationwide rollout of E20.

Concerns over mileage and older vehicles

The government's decision to advance the nationwide rollout of E20 petrol by five years — from the original 2030 target to 2025 — has drawn mixed reactions from consumers.

Although most newer vehicles are designed to operate on E20 fuel, owners of older cars and two-wheelers, particularly those certified for E10 petrol, have reported concerns ranging from lower fuel economy to potential wear and tear of engine and fuel-system components.

One of the primary reasons is ethanol's lower energy content compared with petrol. Since ethanol has a lower calorific value, vehicles generally travel fewer kilometres per litre when running on higher ethanol blends. The actual impact varies depending on engine design, vehicle age and whether the engine has been optimised for ethanol-blended fuels.

Ethanol is also hygroscopic, meaning it absorbs moisture from the atmosphere. Over time, this can increase the risk of corrosion in fuel-system components not designed for higher ethanol concentrations, raising concerns among owners of older vehicles.

According to the report, government officials believe some of the concerns may have been overstated but acknowledge that consumers need greater clarity from original equipment manufacturers (OEMs) on vehicle compatibility and performance.