India Pushes 85% to 100% Ethanol Vehicles as Iran War Drives Asia Biofuel Shift
Updated
Updated · The Associated Press · May 15
India Pushes 85% to 100% Ethanol Vehicles as Iran War Drives Asia Biofuel Shift
8 articles · Updated · The Associated Press · May 15
India has proposed allowing vehicles to run on 85% ethanol or even 100% ethanol as the Iran war disrupts fuel imports and lifts gasoline and cooking-gas costs.
Nearly 90% of India’s crude is imported, and the Strait of Hormuz disruption has already forced fuel price increases, LPG shortages and panic buying in Odisha, even after nationwide 20% ethanol blending cut 2025 crude imports by 2.5%.
Indonesia and Malaysia are also raising biofuel ambitions—Jakarta wants 50% biodiesel from 40%, while Kuala Lumpur approved a gradual move to 15% with 20% under consideration—to curb exposure to imported fossil fuels.
Drivers and analysts say higher blends can reduce mileage, require engine testing and new supply chains, and may take years to scale despite the policy push.
About 70% of India’s ethanol comes from sugarcane, corn and rice, leaving experts warning that crop-based biofuels can strain food supplies, water resources and forests even if they improve energy security.
Is Asia's biofuel rush trading an energy crisis for a food and water catastrophe?
Can Asia's fragile grids support a simultaneous push for both biofuels and electric vehicles?
India's Ethanol Revolution: Achieving E20 and Charting the Path to E85/E100 for a Greener, Self-Reliant Future
Overview
India is rapidly advancing its biofuel program with a clear vision to boost environmental responsibility, energy security, and rural economic growth. By focusing on ethanol blending, the country aims to use domestically grown crops to reduce its dependence on imported crude oil and improve urban air quality. This strategic shift has already brought significant benefits, such as saving foreign exchange, lowering oil imports, and supporting farmers through steady crop demand. Building on the success of the E20 petrol standard, the government is now exploring higher ethanol blends like E85 and E100 to further strengthen these gains and drive a sustainable energy future.