The Centre is evaluating a phased transition to higher ethanol-blended petrol, with E21 likely to be introduced in 2027 and E25 potentially following by 2029, according to government sources.
However, officials stressed that any move to E25 will be contingent on comprehensive scientific and technical validation before implementation.
The proposed roadmap builds on India's successful rollout of E20 petrol, which underwent extensive scientific assessment before being introduced nationwide.
Sources said the country's ethanol blending programme has been designed in line with global best practices, ensuring vehicle compatibility, fuel efficiency and environmental safety.
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India's ethanol production capacity has now reached around 2,000 crore litres, a level that is considered sufficient to support higher blending requirements over the coming years.
While production capacity is no longer viewed as a key constraint, policymakers are expected to adopt a calibrated approach before approving blends beyond 20%.
The shift towards higher ethanol blending is part of the government's broader strategy to reduce dependence on imported crude oil, strengthen energy security and support domestic farmers through increased demand for biofuels.
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The economic benefits of the E20 programme have already been substantial.
According to estimates, 20% ethanol blending helps India save nearly 4.5 crore barrels of crude oil annually, while generating foreign exchange savings of more than Rs 1.9 lakh crore.
Oil Minister Hardeep Singh Puri clarified that any decision on rolling out E25 fuel will be taken only after the necessary scientific testing and technical evaluations are completed, underscoring the government's cautious approach to expanding the ethanol blending programme.
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