India Begins Testing E25 Petrol to Boost Biofuel Use and Reduce Oil Dependency

New Delhi: The government has begun testing E25 petrol on vehicles to gauge the performance of the blend containing 25% ethanol, as part of efforts to increase the use of the locally produced biofuel and reduce dependence on imported crude oil.

Senior government officials ET spoke with said the Automotive Research Association of India (ARAI) has been tasked with the study and that it has started testing the efficacy of E25 petrol on E10- and E20-compliant vehicles.

The government is exploring increasing the ethanol content in petrol even as its E20 petrol mandate that took effect in April continues to face consumer criticism with many having complained about reduced fuel efficiency.

Risk of Backlash

In some cases, consumers have flagged damage to vehicles not compliant with the fuel, but the government and industry have dismissed claims that E20 has harmed vehicles.

ARAI will test the impact of the blend on performance and fuel efficiency over 150,000 km. Its report, expected to be finalised by the end of next year, will then be sent to the International Centre for Automotive Technology (ICAT) for vetting, they said.

“Once the study is vetted by the ICAT, it will be sent to the Ministry of Petroleum & Natural Gas, which will decide on if and when higher blends of ethanol are to be mandated for use and sale in the country,” a senior ministry official aware of the plans said.

Production of vehicles which are E20 material compliant started from April 2023. All vehicles sold in the country from April 1, 2025 are material and fuel compliant with E20. From April 1 this year, petrol sold nationwide must meet E20 standards.

Increasing the ethanol content has become a risky decision, given the backlash the government has faced over E20, a senior industry executive said.