Was this article helpful?
India is inching toward a major E27 ethanol blend moment, and it could be a big lever to lower the oil import tab.
On paper, the concept sounds straightforward — mix more homegrown ethanol into petrol to cut back on crude oil imports and make exhaust emissions cleaner. In reality, pulling it off is far more complicated.
The question now is not just if India can do it, but how neatly it can land the move without jolting drivers or the economy.
Government of India has shared indications to finalize norms for 27% ethanol in petrol by the end of August. This seems strongly connected to building on the E20 rollout and taking ideas from Brazil. The latter has, after all, been running E27 successfully since 2015.
Standards work is underway, with testing agencies assessing what updates vehicles might need for higher blends. The aim is to offer a defined fuel grade, backed by clear specifications, so automakers, oil firms, and consumers have a stable target to plan around.
India imports an overwhelming majority of its crude. This exposes Bharat’s economy to global price swings.
Ethanol blending has already saved substantial foreign exchange and replaced millions of tons of crude under E20, pointing to real import substitution potential.
Pushing to E27 would deepen that savings pool if supply chains, pricing, and vehicle readiness keep pace.
Most of the new BS6 Phase 2 vehicles sold since April 2023 are E20-ready. Tests have shown that more than a few modern engines can already cope with higher ethanol blends. In these cases, they need only minor adjustments.
When it comes to older cars and two-wheelers — especially those built before 2023 — they might require ethanol-friendly components to run reliably.
We can therefore anticipate a transition that revolves around clear labeling at pumps, upgrade guidance from OEMs, and consumer awareness to avoid last-minute repair bills.
Ethanol has a naturally high octane rating. It actually helps engines avoid knocking. Blending it into petrol can also cut harmful emissions, which is a plus for air quality.
Let’s explore this a little more…
Octane measures how well a fuel can resist “knocking.” This is the uneven or premature ignition of the fuel-air mix inside an engine. Knocking makes a sharp metallic sound. Over time, this can cause serious engine damage.
Ethanol’s octane rating is higher than that of regular petrol. This means it can withstand greater heat and compression before igniting. When mixed into petrol, it raises the fuel’s overall octane level. This results in smoother, more controlled combustion, with these benefits:
Think of it like cooking — if you turn the heat up too high too soon, food burns on the outside before it’s cooked inside. High-octane fuel is like an ingredient that can handle more heat without “burning” too early, so the engine’s “cooking” process stays perfectly timed.
That said, there’s a flip side to this… Ethanol carries less energy per liter than petrol, so drivers might notice a small mileage dip.
In newer, well-maintained vehicles, the drop in fuel efficiency is generally small. However, older or non-compliant models might end up experiencing a bigger mileage drop. They could also witness faster wear on rubber seals or fuel-system parts unless upgraded.
Blending programs have already sent significant payments to farmers and distilleries. This has further strengthened rural incomes and reduced arrears in sugarcane belts.
This biofuel push is also backed by policies that expand feedstocks, including crop residues, which can ease pressure on water-intensive crops; if scaled carefully.
If India grows supply with a balanced mix, it can support energy security, reduce oil exposure, and keep the farm economy engaged in the transition.
Ethanol blending India has already delivered measurable Forex savings and crude substitution at E20 levels, and those gains scale as the blend rises.
E27 is not a magic switch, but it is a credible next step that, if paired with robust standards, practical vehicle guidance, and balanced feedstock growth, can push down import dependence while improving air quality.
The direction is right. The execution will decide the size of the prize.
CarOnPhone is your one-stop destination to see all upcoming cars, latest cars, released cars, and EV Cars, and compare Cars in all Car Brands. Stay tuned and follow us to update yourself on the automotive world.
Caronphone 
