Refined Products, Agriculture, Energy Transition, Diesel-Gasoil, Gasoline, LPG, Biofuels, Renewables, Sugar

September 07, 2026

India's ethanol surplus grows as diesel blending hits a roadblock

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HIGHLIGHTS

Safety tests stop ethanol-diesel fuel mix

Distilleries face massive inventory buildup

Government explores cooking fuel alternative

India has halted its ethanol-diesel blending program after safety tests showed the fuel mix is dangerously flammable, leaving distilleries with a major surplus. With no plans to boost gasoline blending beyond 20%, the government is now considering using ethanol as a cooking fuel to help offset the country's heavy reliance on imported LPG.

Related links:

Flashpoint failures halt India ethanol-diesel blend program (subscriber content)

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