The Cabinet Committee on Economic Affairs has issued a directive that makes it mandatory for all the state-run oil refining companies to blend ethanol with petrol to the tune of 5 per cent. This is being done to reduce India's dependency on fossil fuel imports.
Ethanol is also cheaper than petrol, so the losses that the oil companies suffer should be lower thanks to the new directive. The companies have been blending ethanol with petrol for a while now but there has been no clear rule to this effect.
Most petrol cars sold in India are already E10 ready, which means they can take up to a 10 per cent blend of ethanol in their fuel. This is important because ethanol is corrosive to rubber parts, so the life of parts like rubber hoses and gaskets will be shortened if the engine isn't adapted to take the right mix of ethanol. On the bright side, ethanol has a higher octane rating then regular fuel, so you can expect an infinitesimal increase in power from your petrol car!
