
With E20 petrol set to become mandatory across the country next month, the government is already looking at the next step. Discussions have begun with automobile manufacturers to assess the feasibility of moving from a 20 percent ethanol blend to an E25 mix at retail fuel outlets.

The push comes as the ongoing crisis in West Asia disrupts crude oil supplies and drives up global prices. Since the country imports roughly 85 percent of its crude oil requirements, blending more domestically produced ethanol is seen as a crucial way to shield consumers from price shocks.
However, the proposal has made the auto industry highly cautious. Representatives from the Ministry of Heavy Industries recently met with executives from the apex body of automobile manufacturers to discuss the E25 transition.

During these talks, vehicle manufacturers raised serious concerns regarding regulatory compliance, engine testing, and consumer liability. These discussions are happening parallel to separate meetings held by the petroleum ministry.

Those talks aim to push automakers to launch flex fuel vehicles capable of running on E85 and E100 blends. Currently, no such models are on sale because the technology makes them significantly more expensive than standard petrol vehicles.
One of the biggest technical challenges involves the in service conformity rules under the Bharat Stage VI emission standards. Under this regulatory mechanism, authorities periodically test vehicles that are already on the road to ensure they still meet strict emission limits. Currently, the vast majority of new cars and two wheelers are calibrated specifically to run on E20 fuel.

If the baseline fuel at pumps changes to E25, the combustion characteristics inside the engine will alter. Automakers worry that a vehicle perfectly compliant at the time of its original certification might fail these real world emission checks later.
This failure would happen simply because the fuel composition changed, not because the manufacturer delivered a defective product. This creates a significant regulatory grey area that needs to be resolved before higher blends are introduced.
Manufacturers are equally worried about customer blowback. Running an engine on a higher ethanol blend than it was designed for can affect fuel efficiency, performance, and long term component wear. If mandatory E25 fuel leads to more frequent trips to the service centre, buyers are naturally going to hold the carmakers responsible.

The industry argues that they cannot be held liable for mechanical issues caused by a state mandated change in fuel chemistry. Executives have made it clear that if a policy driven shift to E25 happens, the government must take an active role in communicating the potential impacts to vehicle owners. Automakers do not want to carry the burden of explaining mileage drops or engine wear to frustrated buyers.
The hesitation from manufacturers is rooted in the recent rollout of E20. Extensive testing was conducted by research agencies before E20 was introduced. Despite that validation, many vehicle owners reported drops in fuel economy and expressed concerns about engine health during the transition phase. This situation was worsened by the fact that lower blends like E10 quickly became unavailable at many fuel stations, leaving motorists with no choice.

For E25, large scale validation on engines and fuel system components has not yet been carried out. Carmakers are urging the government to conduct thorough scientific studies before rolling out the new blend. While the government defends ethanol blending for its economic and environmental benefits, forcing a higher blend into fuel tanks before engines are ready could create massive maintenance issues for millions of existing vehicles.
Via BusinessStandard