India may soon increase ethanol blending in petrol to 25%. Here’s what consumers should know

The tensions in West Asia are reportedly pushing the Indian government to accelerate its transition towards renewable energy and reduce dependence on imported crude oil. As per a TOI report, officials familiar with ongoing discussions said India is now considering a faster expansion of clean energy sources, including a possible increase in ethanol blending in petrol from 20 per cent to 25 per cent in a phased and calibrated manner.

The renewed focus on India’s renewable energy strategy comes as global oil and gas markets continue facing uncertainty because of geopolitical instability in West Asia. The conflict has disrupted energy supply chains, triggered fears of shortages and sharply increased crude oil prices worldwide, forcing countries like India to strengthen domestic energy resilience.

India Considering Higher Ethanol Blending to Cut Crude Oil Dependence

Government officials said India’s ethanol blending programme has already helped significantly reduce crude oil imports. According to estimates, achieving 20 per cent ethanol blending has helped India save nearly 4.5 crore barrels of crude oil annually while reducing foreign exchange outflow by around Rs 1.5 lakh crore.


Authorities are now evaluating whether ethanol blending in petrol can gradually be increased to 25 per cent. However, officials indicated that the government is expected to move cautiously because of ongoing concerns regarding fuel efficiency, engine compatibility and the long-term impact on vehicles.

India Expanding Refining Capacity and Strategic Petroleum Reserves

Alongside renewable energy expansion, India is also increasing its domestic refining capacity to build stronger protection against global supply disruptions.

The TOI report revealed that officials said maintaining refineries at nearly 100% capacity for extended periods is not considered sustainable, which is why additional refining infrastructure is being prioritised.

The Barmer Refinery has already begun operations, while expansion work at Numaligarh Refinery is currently underway. Authorities are also focusing on integrated refinery projects planned along India’s western coastline.

In addition to a proposed mega refinery project in Maharashtra, a new refinery facility is also being planned in Gujarat as part of efforts to improve domestic fuel processing capacity.

The government is also strengthening India’s strategic petroleum reserves to create a larger emergency energy buffer in case global oil supply disruptions worsen further.

Renewable Energy, Biofuels and Hydrogen Become Strategic Priorities

Officials indicated that renewable energy, biofuels and green hydrogen are now being viewed not only as environmental goals but also as strategic national priorities.

The recent instability in global energy markets has highlighted the risks associated with excessive dependence on imported fossil fuels. As a result, India is increasingly focusing on renewable power generation, cleaner transportation fuels and hydrogen-based energy systems to reduce long-term vulnerability.

Energy experts believe India’s accelerated renewable energy push could help improve energy independence, stabilise fuel supply chains and shield the economy from sudden international oil price shocks in the future.

India’s Energy Transition Gains Momentum Amid Global Uncertainty

The West Asia conflict has once again exposed the fragile nature of global energy markets, prompting governments worldwide to reassess long-term fuel security strategies.

For India, the crisis appears to be accelerating policy discussions around renewable energy adoption, ethanol blending expansion, strategic petroleum storage and refining capacity growth.

Inputs from TOI