E25 Petrol As India's Default In 2-3 Years: Mileage Will Drop, Prices Won't
The Government of India is in active consultations with the auto industry to make E25 petrol the country's standard fuel within the next two to three years, according to a CNBC-TV18 report. The move would push India past the current E20 blend, following a recent BIS notification covering E22, E25, E27 and E30 specifications.
What was announced
According to the CNBC-TV18 report, the central government is evaluating E25, a blend of 25 percent ethanol and 75 percent petrol, as the next nationwide standard fuel. Consultations with the auto industry are underway, with a transition window of two to three years from the current E20 regime under discussion. The plan involves E25 becoming the default petrol available at fuel stations across the country, not a parallel premium grade.
E25 will cut your mileage further while pump prices stay where they are, and no one in the consultation is talking about compensating existing owners.
The discussions follow a Bureau of Indian Standards notification covering fuel specifications for higher ethanol blends: E22, E25, E27 and E30. The BIS move does not mandate an immediate rollout; it formalises the specifications so that oil marketing companies and automakers have a reference framework once policy decisions are taken. It also signals clear government intent to move beyond E20, which itself was advanced from a 2030 target to 2025.
Sources cited in the report indicate the government is specifically exploring a monofuel E25 strategy, where E25 replaces E20 at the pump rather than being sold alongside it. That has direct implications for engine calibration, fuel-system materials and warranty coverage on the current vehicle parc, none of which has been spelt out in the consultation so far. The auto industry's formal response, including timelines for E25-compliant engines and any transition support for existing E10 and E20 vehicles, has not been made public. No official notification on the E25 timeline has been issued by the Ministry of Petroleum and Natural Gas.
The Car Jury verdict
This is a tax-and-farm policy dressed as a climate one, and buyers will absorb the cost. E25 carries roughly 25 percent ethanol, which has lower energy density than petrol, so fuel efficiency on existing E20-tuned cars will drop further, on top of the dip owners already report since the E20 rollout. Pump prices will not fall to compensate, because excise structure does not pass ethanol's lower cost through.
As Motor Inc puts it, Maruti Suzuki has always been the brand 'talking about efficiency,' and that pitch is exactly what gets diluted here. If you are shopping today, the verdict does not change: the Maruti Swift and Brezza remain BUYs, but factor in a real-world mileage haircut. Strong hybrids and EVs like the e-Vitara get a quiet boost from this policy, because they sidestep the blend problem entirely.