IndiaEthanol BlendingEnergy SecurityRefinery ExpansionStrategic Petroleum Reserves
India Considers 25% Ethanol Blending in Petrol Amid West Asia Energy Disruptions
Published: May 8, 2026
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India is moving toward increasing ethanol blending in petrol to 25% in a phased and calibrated manner, driven by energy security concerns arising from the ongoing conflict in West Asia, government officials said. The push is part of a broader strategy to reduce reliance on imported crude oil and insulate the economy from global price shocks.
Alongside blending expansion, the government is accelerating domestic refining capacity, with the Barmer refinery now operational, Numaligarh expansion underway, and integrated refinery projects in Maharashtra and Gujarat in planning stages. Officials noted that running refineries at full capacity is unsustainable without buffer capacity, necessitating infrastructure upgrades.
Ethanol blending at the current 20% level has already saved 45 million barrels of crude annually and reduced foreign exchange outflow by ₹1.5 lakh crore, officials said. However, concerns over vehicle compatibility and fuel efficiency are prompting a cautious, gradual rollout to address stakeholder anxieties.
The energy strategy also includes expanding strategic petroleum reserves and integrating renewables and hydrogen into the national energy mix, which officials now treat as a strategic imperative rather than solely an environmental goal. The government will continue monitoring technical feasibility and supply chain readiness before finalizing the 25% blending roadmap.