Minister of Petroleum and Natural Gas Suresh Gope informed the Rajya Sabha that the government has not yet decided to increase the ethanol share in gasoline above the established 20 percent. He clarified that any possible increase will depend on further scientific research and consultations with the industry.
Gope emphasized that the transition to higher levels is only possible after thorough detailed scientific and technical investigations and discussions with all stakeholders, including automobile manufacturers, oil marketing companies, and scientific institutions.
The Minister noted that India achieved the target blending level of 20 percent five years ahead of schedule. After more than two decades of phased implementation, the average blending share increased from approximately 1.53 percent in the 2013-14 period to 20 percent in the 2025-26 supply year.
Since the program began in 2014-15, many positive results have been achieved: over 1.97 trillion foreign currency rupees saved, about 316 lakh tonnes of crude oil displaced, approximately 952 lakh tonnes of carbon dioxide emissions prevented, and over 1.66 lakh crore additional income generated for farmers.
Gope stated that the government has not received 'widespread or substantiated complaints' from automakers, automotive associations, or consumer groups regarding engine breakdowns, fuel pump problems, corrosion, or water contamination related to E20 fuel. Nevertheless, concerns raised in the media and social networks were taken into account and scientifically examined.
He also mentioned that over 200 million two-wheelers and more than 30 million passenger cars, including many manufactured before E20 certification, have been operated on E15-plus and E19-E20 fuel for three and a half and two and a half years respectively, 'without any confirmed evidence of widespread engine failures or vehicle breakdowns.' Data from the service of one leading four-wheeler manufacturer covering 2.84 crore vehicles in 2025-26, including 1.5 crore non-E20 certified machines, showed no fuel-related damage, as did similar findings from a leading two-wheeler manufacturer.
Gope explained that any loss of range in older vehicles designed for E10 is 'generally negligible,' amounting to about 3-5 percent, while E20 provides a higher octane rating and cleaner combustion. Manufacturers continue to honor warranty obligations for vehicles using the corresponding E20 fuel.
Regarding food security, the minister noted that the 20 percent blending target did not lead to a decrease in the availability of food crops, as only surplus grains are used for ethanol production, which remain after fulfilling the requirements of the Public Distribution System, Food Security Act, and buffer stocks. The volume of rice diverted for ethanol production increased to 39.28 lakh tonnes by June 30, 2025-26, compared to 31.11 lakh tonnes in 2024-25, while corn diversion amounted to 67.87 lakh tonnes for the same period, down from 131.18 lakh tonnes in 2024-25. He also stated that retail sugar and rice inflation was unaffected, calling the program a 'waste-to-wealth' approach.
On the issue of water usage, Gope reported that the government's approach is aimed at maintaining water sustainability, and the raw material base has been diversified beyond sugarcane, including corn, whose share in ethanol production grew to approximately 37 percent in 2025-26 from zero in 2021-22. Typically, ethanol plants consume 3-5 liters of purified water per liter of ethanol produced, and distilleries are required to operate in a zero liquid discharge mode.
State oil marketing companies purchased 705.43 crore liters of ethanol worth 49,577 crore rupees in 2025-26 up to June, exceeding 1,033.31 crore liters worth 73,996 crore rupees in 2024-25 and 679.04 crore liters worth 48,757 crore rupees in 2023-24. It was also noted that there are currently 501 registered ethanol suppliers.
The Minister added that there are no plans to introduce mandatory presence of lower blended or unblended gasoline at specific retail outlets, as parallel supply chains would lead to increased costs and weaken the environmental and farmer benefits of the program. He concluded that the government's policy is a gradual transition to cleaner, technologically advanced, and environmentally sustainable fuels in line with the National Biofuel Policy and the Ethanol Blended Petrol Program (EBP).
The National Energy Policy Council (CNPE) deliberated this Tuesday, the 14th, on raising the minimum percentage of anhydrous ethanol required in gasoline, increasing it from 30% to 32%. This change will initially be valid for 180 days, with the possibility of being extended for the same period.
According to the federal government, this determination aims to decrease the country's dependence on imported gasoline. Furthermore, the measure seeks to increase the contribution of biofuels to the Brazilian energy matrix and assist in controlling fuel costs amid the instability of the international oil market, a scenario intensified by the conflict in the Middle East.
The Ministry of Mines and Energy (MME) reported that the implementation of E32 gasoline may result in a monthly reduction of approximately 500 million liters in the need for fuel imports. This volume is considered sufficient to achieve Brazilian self-sufficiency in energy supply. This adjustment is part of the policy called Future Fuel, a program designed to promote the use of renewable fuels and mitigate greenhouse gas emissions in the transport sector.
The CNPE assured that the new composition was rigorously tested in the laboratory and under real-world usage conditions, covering aspects such as performance, drivability, cold start, consumption, and emissions. The council confirmed that the results indicated behavior identical to gasoline with a lower ethanol content, without causing significant damage to the operation of vehicles, including those equipped with gasoline-only engines (not flex).
In addition to approving E32 gasoline, the CNPE issued two new resolutions. One strengthens the activities of the National Agency of Petroleum (ANP) in combating fuel fraud and adulteration. The other consists of revoking a resolution regarding the voluntary commercialization and use of biodiesel, whose content will be integrated into Law No. 14,993/2024.
Although the increase in ethanol content was expected, the proposal had been presented by the government in June, following a meeting between President Luiz Inácio Lula da Silva and representatives of the sugar-energy sector. It is relevant to note that in June 2025, the mandatory blend had already been raised from 27.5% to 30%, while the percentage of biodiesel in diesel remained unchanged this time.
