Energy Minister reports that E25 fuel is in testing phase, implementation decision not yet made

India's fuel system is undergoing a transformation, with active discussions surrounding E20 gasoline, flexible fuel, and ethanol. Following the discussion of E20, the government has announced the next phase, preparing for the introduction of E21, and subsequently E25 fuel, which signifies a further increase in ethanol concentration in gasoline.

Plans to Increase Ethanol Share

According to sources, the central government is working on plans to further increase the share of ethanol in gasoline. If the approved plan is followed, E21 could be introduced by 2027, and E25 by 2029. This transition will be gradual to provide sufficient time for both vehicle manufacturers and consumers to adapt.

Current Policy and Goals

Sources indicate that the possibility of setting a maximum limit of 25 percent ethanol within the existing ethanol blending policy is being considered. Thus, E25 could become the limit of the current government ethanol blending policy. The government achieved the E20 blending goal ahead of schedule, completing it five years earlier than the original plan of 2030. Currently, E20 gasoline, consisting of 20 percent ethanol and 80 percent gasoline, is available across the country.

Public Concerns and Worries

Despite government statements claiming that ethanol blending is a beneficial venture, complaints about using E20 fuel are coming in from across the country. Many car owners report reduced fuel efficiency, damage to components of older vehicles, and increased maintenance costs. In contrast, the government insists on the advantages of ethanol blending.

Transition Mechanism and Economic Benefit

According to sources connected with the government, the transition from E20 will be entirely phased (staged). This is necessary to give automakers enough time to prepare new engines, supply chains, and the required infrastructure. The government aims to avoid sudden changes that could create problems for the automotive industry or vehicle owners.

According to government estimates, blending 20 percent ethanol allows India to save approximately 4.5 billion barrels of crude oil annually, as well as saving about 1.5 lakh crore rupees in foreign currency. The government believes that increasing ethanol blending in the future will enhance energy security.

Market and Public Reaction

Despite official forecasts and statements, people on the ground express significant dissatisfaction with E20 gasoline. Social media is filled with videos and posts describing the difficulties arising with this fuel. Recently, the government also organized a panel involving leaders of major automakers such as Bajaj Auto, Toyota, and TVS, who unanimously noted the benefits of ethanol.

Industrial experts in India have defended the E20 ethanol blending program, stating that the transition to this fuel was based on years of scientific assessments, consultations with stakeholders, and vehicle testing, despite growing concerns about this policy.

Program Implementation Process

At a press conference in New Delhi, Vartika Shukla, former Chairperson and Managing Director of Engineers India Ltd (EIL), emphasized that the ethanol blending program was not launched suddenly but went through a structured implementation process. She reported that the program was presented to the public for structured discussions and stakeholder consultations as early as 2018.

Industry Support and Research

Shukla noted that this initiative is supported by scientific research and testing conducted by automakers, the Automotive Research Association of India (ARAI), and the Society of Indian Automobile Manufacturers (SIAM).

Automakers' Stance

These statements came amid concerns from some car owners regarding the impact of E20 fuel on fuel consumption and overall vehicle performance. Vikram Gulati, Head of Toyota Kirloskar Motor and Executive Vice President, stated that ethanol has long been used as transportation fuel and meets established technical standards. He added that ethanol is a clean fuel that provides good handling and acceleration.

Gulati also highlighted that ethanol is produced from plant-based raw materials, contributing to reduced carbon emissions. He stressed that in the era of climate change, this represents a zero-carbon footprint fuel derived from plants.

The first mass-market car in India with Flex-Fuel capability entered the market with grand claims, but initial data raised several questions. Approximately three weeks after the launch, only 3 units of the Maruti WagonR BioFlex were registered. While this might seem like a poor start at first glance, the real problem lies not with the car itself, but with the system, as only a small number of refueling stations across the country offer E85 fuel.

Launch and Specifications of WagonR BioFlex

Maruti Suzuki introduced the WagonR BioFlex on June 4th, with deliveries starting on June 17th. This vehicle is the first mass-market passenger car in the country capable of running on a blend of gasoline and ethanol ranging from E20 to E100. The presentation was conducted by the Minister of Central Road Transport and Highways, Nitin Gadkari.

According to current regulations, this version of the WagonR was certified for E85 fuel use. Its price is set at ₹7.24 lakh (excluding taxes), which is approximately ₹74,000 more than the top gasoline variant. Sales data shows that only three units of this car were registered by June 29th.

Popularity and Sales Challenges

The Maruti WagonR traditionally enjoys great popularity in the Indian market, having first appeared in 1999 and showing excellent results over nearly 27 years. Over 3.4 million such cars have been sold so far, leading to high expectations for its Flex-Fuel version. However, the primary reason cited for low sales is the limited availability of E85 fuel.

Currently, only 48 refueling stations operate across India offering E85 fuel, with most concentrated near Delhi-NCR and Mumbai. This makes purchasing the car less attractive for customers from other states.

Economic Aspects and Information Gaps

On paper, E85 fuel looks attractive: in Delhi, it costs ₹81.12 per liter, which is about ₹20 cheaper than regular E20 gasoline (₹102.12). Nevertheless, the addition of ethanol reduces performance because ethanol contains less energy than gasoline, which could potentially decrease fuel efficiency in vehicles running on high-ethanol fuel.

Maruti Suzuki has not provided any information regarding the fuel consumption of the WagonR BioFlex on E85 fuel. This raises questions among buyers about actual running costs. The WagonR has always been a choice for middle-class families; its standard gasoline model has a claimed mileage of 24 km per liter, and the CNG version achieves 34 km per kg. The absence of public data on the fuel economy of this Flex-Fuel variant is also a significant factor contributing to low sales.

History of Flex-Fuel in India

The journey of Flex-Fuel in India began quite some time ago. As early as 2019, TVS Motors released a Flex-Fuel version of its popular Apache motorcycle, specifically designed for 100% ethanol fuel. However, this TVS project was almost unsuccessful due to the inability to expand the E100 fuel network.

On the other hand, Honda released its CB 300 F motorcycle with Flex-Fuel capability in October 2024, but barely 30 units have been sold. Furthermore, Suzuki introduced the Gixxer SF in a Flex-Fuel version in early 2025, and not a single unit of this bike has been sold yet.