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Informist, Tuesday, Jun. 23, 2026

 

NEW DELHI – India is likely to need about 20 billion litres of ethanol annually by 2030 if the government raises biofuel blending in petrol to 30% from 20%, Daphne Tan, associate director – commercial strategy, S&P Global Platts, said. Prolonged disruptions in West Asia are prompting several countries to accelerate their biofuel blending programmes to reduce reliance on imported crude oil, she added. 

 

"Markets with the capacity to increase biofuel blends are doing so as fossil fuel supplies remain locked," she said at S&P Global's energy briefing here on Tuesday. India has rolled out nationwide E20 sales and started dispensing E85 or E100 blends in select outlets. Thailand has cut taxes on E20 to encourage its use over E10, while Vietnam accelerated its mandate to E10, and Indonesia is planning to introduce ethanol blending in petrol by the end of 2026. 

 

Outside Asia, Argentina has introduced voluntary sales of E15, while US has temporarily waived restrictions on E15 sales during summer to ease gasoline prices, and is considering long-term plans to allow year-round sales, Tan said. 

 

On the biodiesel front, Indonesia has accelerated biodiesel blending to 50%, Malaysia aims to gradually increase blending to B20 from B12, and Thailand has raised the blending mandate to B7 from B5. Mainland China has also allowed biodiesel blending of less than 5% in road transport and 30% in the shipping sector on a pilot basis. 

 

Amid these increased blending targets, Asia's biofuel demand is projected to rise to 95 million tonnes by 2060 from less than 10 million tonnes in 2015. "Biofuel demand is starting from a very small base, but the year-on-year incremental demand is pretty phenomenal," she said. Despite the rapid growth, biofuels are expected to account for only 11% of Asia's transport fuel demand by 2060 due to feedstock constraints and increased penetration of electric vehicles, Tan said. End

 

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj

 

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