Higher Ethanol Blends Need Ground Readiness Before Notification! – Indian PSU

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OPINION PIECE By Hemant Sirohi

India’s ethanol blending programme is an important national initiative aimed at reducing fossil fuel dependence, supporting the agricultural economy and promoting cleaner energy. As stakeholders connected with the petroleum retail sector, we appreciate and support this larger policy direction.

At the same time, any transition towards higher ethanol blended fuels such as E85 and E100 must be supported by adequate operational preparedness, infrastructure compatibility, quality assurance systems and balanced stakeholder responsibility.

It is in this context that I wish to place certain concerns regarding draft notification G.S.R. 313(E) dated April 27, 2026 proposing amendments under Rule 115 of the Central Motor Vehicles Rules for inclusion of higher ethanol blends.

The draft, while dealing with emission-related provisions, does not appear to address the practical prerequisites necessary for safe and effective implementation at the field level.

Need To Examine Supply Location Compliance

As per existing Industry Quality Control Manual and Marketing Discipline Guidelines, handling of ethanol blended fuels requires disciplined compliance at supply locations.

These include:

  • use of dedicated tanks and tank lorries,
  • proper blending controls,
  • mandatory compartment-wise sampling and sealing,
  • and pre-dispatch quality verification.

However, practical observations indicate that these systems are not uniformly implemented. Shared transportation systems, lack of verifiable cleaning protocols, and absence of standardized ethanol-compatible detection mechanisms continue to remain areas of concern.

Unless the integrity of the product is ensured at dispatch level itself, higher ethanol concentration fuels may face quality instability during transportation and delivery.

Retail Outlet Infrastructure Requires Upgradation

Another important issue is the preparedness of Retail Outlets.

Under applicable safety standards, storage and dispensing infrastructure must be compatible with the nature of the product being handled. In the case of E85/E100, this becomes even more important because ethanol has moisture absorption characteristics and can affect material compatibility.

At present, many Retail Outlets do not have:

  • ethanol-compatible tank linings,
  • suitable seals and gaskets,
  • moisture control systems,
  • ethanol-specific testing kits,
  • or validated water detection tools suitable for such blends.

Without these systems, the possibility of phase separation, corrosion and off-specification product cannot be ignored.

Quality Transparency Must Be Strengthened

A petroleum dealer receives the product but has limited visibility over the actual blending process at dispatch.

At present, there is no structured system for:

  • ethanol percentage certification with each load,
  • access to batch blending data,
  • transparent sampling records,
  • or regular sharing of quality audit findings.

This creates a situation where the dealer is expected to maintain accountability before the consumer without having adequate verification capability.

For successful implementation, traceability and transparency across the supply chain are essential.

Dealer Responsibility Must Be Matched With Dealer Support

Higher ethanol blended fuel handling will require new operational discipline at retail level.

Dealers will need:

  • technical training,
  • standard operating procedures,
  • testing kits,
  • and in many cases infrastructure upgrades.

In addition, there should be a clearly defined mechanism for allocation of responsibility in case product-related disputes arise.

At present, there is concern that dealers may be exposed to operational and financial risks without corresponding technical control or institutional support.

Consumer Awareness and Vehicle Compatibility Are Necessary

A significant portion of the current vehicle fleet may not be fully compatible with very high ethanol blends.

Therefore, before wider introduction, it is important that there is:

  • clear labeling of ethanol percentage,
  • compatibility advisories at dispensing points,
  • and alignment with automobile manufacturer recommendations.

Consumer awareness is an integral part of any fuel transition and should not remain outside the regulatory framework.

Need For Phased and Consultative Implementation

The objective of higher ethanol blending can be achieved effectively only when infrastructure, quality control, consumer safeguards and stakeholder preparedness move together.

A phased implementation after nationwide readiness assessment would therefore be more appropriate.

There is also merit in constituting a joint consultative mechanism involving concerned ministries, Oil Marketing Companies, dealer representatives and the automotive sector to review practical readiness before final rollout.

Conclusion

Higher ethanol blending is a significant step in India’s fuel evolution. However, successful implementation requires more than regulatory notification. It requires confidence in field systems, quality integrity, infrastructure compatibility and fair allocation of responsibility.

Addressing these foundational issues before final notification will strengthen both the credibility and sustainability of the ethanol blending programme.

Views expressed here are those of Hemant Sirohi, Member, Responsible Mentor Empowering Petroleum Dealers Foundation



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