- Ethanol-blended diesel failed required safety specifications because the addition of ethanol sharply lowered the fuel's flash point, Minister of State for Petroleum and Natural Gas Suresh Gopi said on Monday (August 10, 2026), effectively ruling out the fuel for wider use unless the technical issue is resolved.
- Tests found that ethanol-blended diesel did not meet the required diesel flash-point specification because the flash point fell sharply in the presence of ethanol.
- Public-sector oil marketing companies conducted scientific evaluations of ethanol blending with diesel through their research and development centres, in collaboration with accredited laboratories and automobile manufacturers.
- The government has so far focused its ethanol blending programme on petrol and has set a target of 20% blending.
- State-run oil marketing companies floated their first tender in September 2025 to procure about 10.5 billion litres of ethanol for the 2025-26 ethanol supply year.
- They received offers for nearly 17.6 billion litres, about 68% more than the quantity sought, and have allocated 10.485 billion litres to 378 registered suppliers.
- The government is also examining ethanol as a potential cooking fuel, which could help reduce India's dependence on imported liquefied petroleum gas while making use of surplus domestic ethanol production capacity.
- The initiative is aligned with the Government's broader objective of promoting cleaner and alternative cooking fuel options.
Ethanol-blended diesel has been deemed unsuitable for wider use after failing safety tests due to a significantly lowered flash point, as reported by Minister of State for Petroleum and Natural Gas Suresh Gopi.12
The tests conducted by public-sector oil marketing companies revealed that the addition of ethanol sharply reduced the fuel's flash point, which is critical for safety standards. Gopi stated, "The addition of ethanol sharply lowered the fuel's flash point," effectively ruling out the fuel for broader applications unless the technical issues are resolved.3
This finding comes at a time when India is actively seeking to expand the use of ethanol as a transport fuel, aiming to explore new outlets for its rising domestic production. The government has primarily focused its ethanol blending program on petrol, setting a target of 20% blending.47
Gopi also mentioned that no decision has been made to increase ethanol blending in petrol beyond this target. Furthermore, he noted that isobutanol is not currently being blended with diesel, indicating a cautious approach to alternative fuel sources.
The first tender for procuring approximately 10.5 billion litres of ethanol for the 2025-26 supply year was floated by state-run oil marketing companies in September 2025, highlighting the government's commitment to increasing ethanol use despite the recent setbacks.5
“The government has not decided to raise ethanol blending in petrol beyond 20%, and any increase would require further scientific studies. Separately, India is exploring ethanol as a cooking fuel to cut LPG import dependence, with OMCs allocating 10.485 billion litres to 378 suppliers for 2025-26.”
