The Delhi government notified a new electric vehicle policy on 1 July 2026 that sets legally binding phase-out dates for combustion-engine vehicles, marking a decisive shift in urban transport for one of the world’s most polluted capitals. Petrol-powered autorickshaws and light goods carriers cannot be newly registered from 1 January 2027, and new petrol two-wheeler registrations end on 1 April 2028. The policy targets a minimum 30 per cent electrification of Delhi’s vehicle fleet by the end of the decade, backed by a Rs 15,000 crore support package of tax waivers, direct subsidies and scrapping incentives over its lifetime.

The implementation hinges on a rapid build-out of public charging infrastructure from 9,000 to 32,000 points, with the state power utility serving as the nodal agency. A single-window clearance system aims to ease private installations, but drivers of battery-powered rickshaws already voice worries about lengthy charging downtime cutting daily earnings. Viewing the policy from within Delhi’s informal transport sector, the transition poses operational risks that weigh as heavily as the upfront vehicle cost, especially for workers who rely on two-wheelers for ride-hailing and deliveries.

Simultaneously, a national controversy over the mandatory E20 petrol blend – 20 per cent ethanol introduced across India in April 2025 – has erupted after the attorney general referred to the policy as an “experiment” in court, a remark he later said referred to supply volumes rather than the fuel itself. Motorists complain on social media of reduced fuel efficiency and engine wear, with an opposition Congress leader planning a Sunday protest in New Delhi. The government dismisses the criticism as “wild claims,” stressing that extensive vehicle testing found no significant durability issues. In Bhutan, officials cited inadequate underground storage tanks and concerns that ethanol-blended fuel could weaken engine performance on mountainous terrain as reasons for not importing E20, though Indian oil ministry officials clarify that no formal export proposal was ever made.

The twin developments place India’s energy transition under strain: aggressive electrification targets at the state level intersect with a politically charged rollout of blended fuel that is meant to cut oil imports and support farmers. The next milestone to watch is Delhi’s January 2027 registration cutoff, which will test both charging readiness and the political management of livelihoods dependent on cheap petrol vehicles. Regionally, Indonesia’s plan to phase in E20 from 2028 offers a counterpoint of gradual calibration, while Bhutan seeks advance notice to upgrade its fuel infrastructure – a quiet indicator that the shift in transport fuel norms will require prolonged diplomatic and technical coordination.