The Indian central government has made a significant policy decision regarding petrol that will impact both the general public and the automobile sector. According to directives issued by the Ministry of Petroleum and Natural Gas, companies will be required to sell ethanol-blended (E20) petrol, containing a maximum of 20% ethanol, across the country starting April 1, 2026. The new fuel will also have a minimum Research Octane Number (RON) of 95, ensuring it meets certain quality standards established by the Bureau of Indian Standards (BIS).

This announcement comes as part of a broader initiative to promote the use of alternative fuels and reduce reliance on fossil fuels. The policy aims to increase the adoption of biofuels, notably ethanol, which is derived mainly from sugarcane or corn. The introduction of E20 petrol is expected to not only support India’s energy security but also contribute to environmental sustainability by lowering greenhouse gas emissions. However, the notification issued on February 17 hints that certain regions may receive temporary exemptions based on specific circumstances.

The transition to E20 petrol is a strategic move towards cleaner fuel alternatives, yet its implementation raises considerations related to infrastructure, automobile compatibility, and public awareness. The step signifies a major shift in India's energy policy, aligning with global trends towards more sustainable energy options. Stakeholders within the automotive industry will need to prepare for this change to adapt their products to the new fuel specifications, making this a pivotal moment for both consumers and fuel manufacturers in India.