New Delhi – In a major step towards cleaner fuel and energy security, the Government of India has made the sale of 20% ethanol-blended petrol, known as E20, mandatory at all petrol pumps across the country from April 1, 2026. The new rule also requires this fuel to have a minimum Research Octane Number (RON) of 95.
The Ministry of Petroleum and Natural Gas issued the order on February 17, 2026. It says oil marketing companies must supply petrol blended with up to 20 per cent ethanol as per Bureau of Indian Standards (BIS) rules and with at least 95 RON in every state and Union Territory.
This means from next month, you will no longer find plain petrol or lower blends like E10 at most pumps. E20 with higher octane will become the standard fuel for cars, bikes and other petrol vehicles.
What Exactly is E20 Petrol?
E20 is simple – 20 per cent ethanol mixed with 80 per cent normal petrol. Ethanol is a biofuel made in India from sugarcane, maize, damaged food grains and other crops. It burns cleaner than pure petrol.
Ethanol has a very high octane rating of around 108. When mixed, it raises the overall octane of the fuel. The government has now fixed a minimum RON of 95 so that engines do not knock or get damaged. Knocking is that pinging sound you sometimes hear when the fuel burns too early inside the engine.
Higher RON means smoother running, better acceleration and less wear on modern engines. Ethanol also cools the engine intake because it absorbs heat when it evaporates. This helps the engine breathe better.
How Did India Reach This Point? A Quick History
India started the Ethanol Blended Petrol (EBP) programme many years ago to cut oil imports and help farmers. In 2014, blending was less than 2 per cent. The target was 20 per cent by 2030.
Things moved fast. In June 2022, India hit 10 per cent blending five months early. Prime Minister Narendra Modi then advanced the full E20 target to 2025.
Oil companies slowly raised the blend – 12 per cent in 2022-23, 14.6 per cent in 2023-24, and nearly 18 per cent by early 2025. By mid-2025, the country had already achieved 20 per cent blending nationwide, six years ahead of the old schedule.
E20 was first sold at some pumps in April 2023. From April 2025, it became widely available and slowly replaced E10. Now, from April 2026, it is compulsory everywhere.
The government has already saved more than Rs 1.40 lakh crore in foreign exchange since 2014-15 by replacing imported petrol with domestic ethanol. The E20 push alone saved about $5 billion (roughly Rs 42,000 crore) in the last year.
Why Has the Government Taken This Step?
There are three big reasons:
1. Less dependence on imported oil India imports more than 85 per cent of its crude oil. Every year we spend huge money on it. Ethanol is made inside the country, so more blending means less money goes out.
2. Cleaner air and lower pollution Ethanol burns cleaner. Studies by NITI Aayog show that sugarcane ethanol cuts greenhouse gas emissions by 65 per cent and maize ethanol by 50 per cent compared to normal petrol. When used in cars, E20 reduces carbon emissions by about 30 per cent compared to E10. This helps fight air pollution in cities.
3. Help for farmers Ethanol is made from crops. Higher demand means sugar mills and distilleries will buy more sugarcane and maize. The government says this will add nearly $4.6 billion (about Rs 38,000 crore) to farmers’ income every year. It also uses surplus rice and damaged grains, so nothing goes waste.
Union Petroleum Minister Hardeep Singh Puri has often said, “India’s ethanol journey is unstoppable.” He has repeatedly assured that the programme has no major negative impact on vehicles and is good for energy security and farmers.
What Does This Mean for Your Vehicle?
This is the question most drivers are asking.
Good news for new cars Almost all petrol vehicles made in India from 2023 onwards are built to run on E20. They have special rubber seals, hoses and engine parts that can handle 20 per cent ethanol. No major problems are expected. In fact, the higher RON 95 may give slightly better performance and smoother drive.
For older cars (made before 2023) These were designed for E10 or less. You may notice:
- Mileage drop of 3 to 7 per cent (some studies say 2-5 per cent in real conditions).
- For example, if your car gave 15 km per litre earlier, it may now give 14-14.5 km per litre.
- Slight increase in fuel cost per kilometre, but the difference is small.
- Over many years, some rubber and plastic parts may wear a little faster, but the government says this is “marginal”.
The government and car makers (SIAM) have studied this carefully since 2020. They say there is no engine damage. No widespread complaints of breakdowns have been reported even after E20 became common in 2025.
Tips for drivers
- Check your car’s owner manual. Most new models clearly say “E20 compatible”.
- If your car is very old (10+ years), get the fuel system checked once.
- Fill up at reputed pumps to ensure good quality fuel.
- Drive normally – aggressive driving increases fuel use in any blend.
Will Petrol Prices Change?
The government has not said anything about price increase. Ethanol is often cheaper than petrol, so the final price at pump may stay similar or even come down slightly in some months. But market forces, crude oil rates and taxes will still decide the final cost.
Challenges and How the Government is Handling Them
Some people worried when E10 was removed from many pumps in 2025. Older vehicle owners felt confused. The government has kept a small window for temporary exemptions in special cases – for example, in very remote areas or during emergencies.
Oil companies are ready. They have built enough ethanol supply and storage. More than 400 distilleries are working across India.
Car companies have also upgraded their models. Most two-wheelers and cars sold after 2023 are E20-ready.
What Industry Leaders Are Saying
Vijendra Singh, President of All India Distillers’ Association, welcomed the move. He called it “a progressive and forward-looking step that reinforces India’s commitment towards energy security, cleaner mobility and sustainable economic growth.”
He added that the rule will give long-term confidence to ethanol producers and encourage new investments in distilleries. This will create jobs and help farmers.
Auto industry bodies have also said that new vehicles are fully compatible and the mileage drop in old cars is manageable.
What Lies Ahead?
The government is already thinking beyond E20. The Bureau of Indian Standards is working on rules for E27 (27 per cent ethanol). Researchers are studying engines for even higher blends.
Some experts talk about E30 in the coming years. The focus is also shifting to ethanol in diesel and other biofuels.
This mandate is part of India’s bigger plan – Atmanirbhar Bharat in energy, cleaner air for citizens, and extra income for farmers.
FAQs
Q1. From when will E20 be the only petrol available?
A: From April 1, 2026, all petrol pumps must sell E20 with minimum RON 95. In rare cases, the government may allow temporary exemptions for some areas.
Q2. Will my new car be affected?
A: No. Cars made from 2023 onwards are designed for E20. You should see smooth performance and possibly better acceleration because of higher octane.
Q3. What about my old car (2015-2022 model)?
A: It is safe to use, but you may get 3-7 per cent lower mileage. The drop is not drastic. No engine damage is expected if the car is well-maintained.
Q4. Will fuel become more expensive?
A: The government has not announced any price hike due to this rule. Actual pump price depends on international crude rates, taxes and ethanol cost.
Q5. How much has India saved because of ethanol blending?
A: More than Rs 1.40 lakh crore in foreign exchange since 2014-15. The E20 programme alone saved around $5 billion last year.
Q6. Does E20 really reduce pollution?
A: Yes. It cuts carbon emissions by about 30 per cent compared to E10. Life-cycle studies show even bigger reductions when ethanol is made from sugarcane or maize.
Q7. Which states produce most ethanol?
A: Uttar Pradesh, Maharashtra, Karnataka and Tamil Nadu have the largest distilleries. Many new plants are coming up in other states too.
Q8. Can I mix normal petrol and E20?
A: From April 1, 2026, normal petrol (without 20% ethanol) will not be available at most pumps. So mixing will not be possible.
Q9. Is E20 safe for two-wheelers and scooters?
A: Yes. Most new bikes and scooters are E20 compatible. Older ones may see a small mileage drop, similar to cars.
Q10. Where can I check the latest official notification?
A: Visit the Ministry of Petroleum and Natural Gas website or PIB.gov.in. The notification dated February 17, 2026 is the main document.
Final Thoughts
The nationwide E20 mandate from April 1, 2026 is a big milestone. It shows India’s commitment to reduce oil imports, fight climate change and support farmers. While some older vehicles may see a small drop in mileage, the overall benefits for the country are huge – cleaner air, more jobs in rural areas, and stronger energy security.
As the date approaches, keep your vehicle in good condition and fill up at trusted pumps. The shift to E20 is here to stay and is part of a larger move towards greener fuels.