Ethanol-blended diesel fails safety test, says govt; wider use ruled out for now

NEW DELHI: Ethanol-blended diesel has failed the required safety specifications because the addition of ethanol causes a sharp fall in the fuel’s flash point, potentially limiting its use unless the technical issue is addressed, the government told Parliament on Monday.Minister of State for Petroleum and Natural Gas Suresh Gopi said public-sector oil marketing companies (OMCs) had tested ethanol-diesel blends through their research and development centres, working with accredited laboratories and automobile manufacturers.“Scientific evaluations on blending of ethanol with diesel have been undertaken by Public Sector Oil Marketing Companies (OMCs) through their respective R&D centres in collaboration with accredited laboratories and automobile manufacturers. It was observed that ethanol blended diesel was not meeting diesel flash point as its flash point lowered drastically due to the presence of ethanol,” he said in a written reply, as quoted by PTI.The findings come as India looks to expand the use of ethanol as a transport fuel and create additional demand for growing domestic production. The country’s ethanol blending programme has so far centred on petrol, with the government targeting 20% blending.Gopi also said isobutanol is not currently being blended with diesel. The government has not taken any decision to increase ethanol blending in petrol beyond 20%, he said, adding that any such move would follow scientific and technical studies and consultations with automakers, OMCs and research institutions.Meanwhile, state-run OMCs floated their first tender in September 2025 for around 10.5 billion litres of ethanol for the 2025-26 supply year. Suppliers offered nearly 17.6 billion litres, around 68% more than the quantity sought, following which OMCs allocated 10.485 billion litres to 378 registered suppliers.The government is also exploring ethanol as a cooking fuel, potentially creating another outlet for domestic production while reducing dependence on imported LPG. “The use of ethanol as a cooking fuel may emerge as the potential biofuel alternative to fossil fuel based cooking solution which may help in reduction of LPG import dependence and provide clean cooking solution. This may also enable effective utilization of surplus ethanol production capacity in the country,” Gopi said.He added that the initiative was aligned with the government’s broader push for cleaner and alternative cooking fuels.The LPG Equipment Research Centre, a joint venture of Indian Oil, Hindustan Petroleum and Bharat Petroleum, is working with public-sector OMCs to develop ethanol-based clean cooking alternatives. The government has also introduced measures including interest subsidies, support for sugar mills to convert distilleries to multi-feedstock facilities and long-term ethanol offtake agreements to boost domestic production.