Iran war energy shock drives interest in ethanol and other biofuels across hard-hit Asia

BENGALURU, India (AP) — Taxi driver Ravi Ranjan, who lives with his wife and child in New Delhi said shipping disruptions caused by the Iran war have forced him to pay higher prices for cooking fuel at a time when India's prime minister is also urging residents to reduce driving and travel.

It's all hitting Ranjan's bottom line, he said, as he's paying three times as much for liquid petroleum gas after facing delays on delivery of the cooking fuel.

“I used to get a cylinder of LPG for 1,000 rupees ($11), now I pay 3,000 rupees ($31) in the black market,” he said.

On the other side of the country, in the coastal city of Chennai, Sushmita Sankar, an advertising executive, said her gasoline and cooking fuel expenses are skyrocketing because of the war. Sankar said gasoline blended with ethanol — the default mix available at fuel stations now — is also worsening her car's mileage.

“Fuel expenses are increasing and with only ethanol mixed petrol available, I feel my car’s mileage has reduced in the last year or so," she said. “Already our days are busy with work and taking care of our child’s school and other needs. Having to now spend a lot of time to fill my car or buy LPG is making things even more hectic.”

Against the backdrop of cooking gas shortages and crude oil price increases, India has proposed letting vehicles run on 85%, or even 100%, ethanol. India has also banned all exports of sugar at least through September to ensure a local supply of sugar, but also to ensure enough raw material is available if ethanol blending levels are to be increased.

The government claims more ethanol will reduce vehicle pollution, but drivers have concerns about mileage. Environmental experts also say that producing corn, rice and other grains for ethanol can take away from food and livestock needs.

Asia was first and hardest hit by fossil fuel disruptions caused by the Iran war's closure of the Strait of Hormuz, a critical shipping artery for energy.

As nations brace for a second wave of impacts, governments want to use more biofuels to slash fuel imports. Indonesia and Malaysia are also pushing policies to increase fuel mixing with palm oil-based substitutes, though experts warn this could drive agricultural expansion and deforestation.

Despite this war-driven interest, it may still take years for higher fuel blends to hit the road in Asia because of time needed for developing supply chains, researching new blends and testing vehicle compatibility.

Prime Minister Narendra Modi asked Indians this month to make “nationally responsible choices" to save fuel by using more public transport, carpooling and skipping international travel.

India imports nearly 90% of its crude oil, so the Iran war has hampered vehicles that need gasoline and millions of homes and restaurants that need LPG. Industries that require natural gas have also been affected. Meanwhile, a national electric grid that runs mostly on coal and some renewables has kept the lights on.

After the Iran war started, the Indian government responded by diversifying their oil sources and proposing higher biofuel blends, but this has only cushioned the shock a little, said energy experts.

Most fuel pumps in India now sell a 20% ethanol blend after the country achieved its goal to roll the blend out nationally in 2025, five years ahead of a government target. Policymakers are considering increasing the blend across all gasoline up to 27% by 2030. The recent announcement by India's transport ministry proposing to allow vehicles that run on 85% ethanol, or even fully on it, is the strongest signal so far to automobile makers to begin producing vehicles compatible with such high blending. The timeline for these even higher blends is still unclear.

"Moving toward higher ethanol blends reflects the government’s long-term vision for energy security, lower emissions, and reduced dependence on imported crude oil,” said Chandra Kumar Jain, president of the Grain Ethanol Manufacturers Association.

India's 20% ethanol blend led to a 2.5% reduction in crude oil imports in 2025, according to the Institute for Energy Economics and Financial Analysis.

Any oil import reduction is good, but a downside of the rapid pace of fuel blending is policy uncertainty and confusion among automobile manufacturers, said Charith Konda of IEEFA.

Southeast Asia similarly sees bioenergy as a way to shield itself from the current crisis and future shocks, according to Reza Yosri, an energy expert at the consultancy Ramboll.

Indonesia wants to increase fuel blending to 50% biodiesel, up from 40%, under a program launched in March by President Prabowo Subianto, who said, “We ⁠are going in a big ​way to biofuel."

The biofuel initiative is part of Indonesia's push for “energy sovereignty" in response to the recent fuel disruptions, according to Putra Adhiguna of Jakarta-based Energy Shift Institute.

Fuel blending will also help Indonesia develop a local market for the palm oil it sells globally, he said. But he cautioned that land clearing and deforestation must be monitored.

In April, Malaysia approved a proposal to gradually increase its fuel mixing to 15% biodiesel and 85% fossil diesel, with a future 20% blend under consideration.

Skyrocketing fuel costs have “revived the idea," said Ahmad Rafdi Endut, a Kuala Lumpur-based energy analyst. However, he cautioned that higher concentrations will need more testing and consumers are wary about reduced mileage.

While ethanol blending is often presented as a substitute for gasoline, experts warn that it is more complicated.

Shyamasis Das of the New Delhi-based Centre for Social and Economic Progress said it's not clear how higher blends would affect current engines, and it will take time to scale up manufacturing for engines that can run on the even higher concentrations.

Drivers may notice trade-offs. Ethanol is less energy-dense than gasoline, meaning vehicles tend to consume more fuel to cover the same distance, Das explained.

Concerns also remain that the crops needed for ethanol could compete with the food supply, raising prices and increasing water stress, according to Das. In India, about 70% of ethanol comes from crops like sugarcane, corn and rice.

Producing a single liter (34 fluid ounces) of ethanol can require anywhere from 3,000 liters (792 gallons) to 10,000 liters (2,641 gallons) of water, a resource already under pressure in a country facing groundwater depletion.

While biofuels can reduce tailpipe emissions, their overall climate impact depends on their production.

Konda, the analyst with IEEFA, said that electric vehicles are likely a more efficient long-term solution, along with moving industries to renewable energy instead of fossil or biofuels.

The climate benefits of crop-based ethanol can be limited by factors including land use and water consumption, analysts say.

Das, with CSEP, said producing ethanol from materials that do not require additional land or water — like agricultural residues, municipal waste and used oils — is key.

“If the biofuel is not sourced from residues or waste, they are not usually treated as renewable," he said.

Delgado reported from Bangkok. AP video journalist Piyush Nagpal in New Delhi contributed to this report.

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FILE - People store fuel in a plastic can at a petrol pump in Srinagar, Indian controlled Kashmir, March 25, 2026. (AP Photo/Mukhtar Khan, file)

FILE - A man fills petrol in a two wheeler at a fuel pump in Prayagraj, in the northern Indian state of Uttar Pradesh, May 5, 2025. (AP Photo/Rajesh Kumar Singh, File)

FILE - A tourist ferry sails past the Indian flagged LPG carrier Jag Vasant transporting liquefied petroleum gas, at the Mumbai Port in Mumbai, India, after it arrived clearing the Strait of Hormuz, April 1, 2026.(AP Photo/Rafiq Maqbool, File)

FILE - A technician works on the top deck of a distillery at Bajaj Hindustan Sugar factory that produces ethanol, a type of biofuel, in Meerut, India, Aug. 23, 2023. (AP Photo/Altaf Qadri, File)

FILE - Workers unload gas cylinders from a truck at a distribution depot in New Delhi, March 19, 2026. (AP Photo/Manish Swarup, File)

DES MOINES, Iowa (AP) — The two Democrats vying to be Iowa's next U.S. senator each tried to explain in a debate Thursday why he's the one to flip the Republican-held seat, showcasing a struggle within the party over the best strategy to reclaim the U.S. Senate this fall.

State Rep. Josh Turek said he's the “battle-tested” candidate who has won in his red state House district by reaching independents and moderate Republicans who supported President Donald Trump. State Sen. Zach Wahls criticized national Democratic leaders, including Sen. Chuck Schumer, who he says have abandoned rural and working-class voters who are frustrated with both parties.

The two spent a largely cordial hour showing many areas of agreement, but an influx of outside spending and recent big-name endorsements has intensified one of the few remaining competitive Democratic Senate primaries this year.

Both Democrats directed most of their attacks toward Rep. Ashley Hinson, who is seeking the GOP nomination.

Iowa’s Republican Sen. Joni Ernst opted out of a reelection bid, leaving the seat open for the first time since she replaced retiring Democratic Sen. Tom Harkin in 2014. Republican Senate leaders have backed Hinson, who represents northeast Iowa, and the campaign arm has committed $29 million to help her keep their thin majority.

Democrats see an opportunity to flip seats in the once-competitive state, despite Trump’s double-digit win in the last presidential election and an all-Republican federal delegation. The political committee aligned with Senate Democrats said Thursday it was investing $13 million in the state. But Iowa Democrats first need to settle on which federal candidate will be at the top of the ticket. Early voting began Wednesday.

Turek said his win in a Trump district will translate statewide, making him the best candidate to go up against a full-fledged Republican operation heading into the general election.

“My opponent, Zach Wahls, has never run against a Republican,” Turek said. “I know that there is something specific about my story, my background, my resume ... that really has this unique ability to win over independents, which are the kingmakers in the process, and moderate Republicans.”

Wahls said he's gone up against plenty of Republicans to advocate and “defend families like mine,” referencing a 2011 speech he made to Iowa lawmakers about his two moms that went viral. Wahls maintained that winning back rural and working-class voters lies with offering a different kind of Democratic Party and a new leader of Senate Democrats.

“We need to win back the trust of rural and blue-collar voters who were written off and lost by Chuck Schumer,” Wahls said. “We have a choice: Run the same playbook that Chuck Schumer ran and lose, or fight for the voters that he wrote off and win them back.”

Wahls has been critical of Turek for not rejecting Schumer as caucus leader. Turek says he would question any leader candidate on what they would do for Iowa and Iowans.

Both candidates focused their attacks Thursday on Hinson. Turek and Wahls, aligned on many issues, criticized votes Hinson has taken in the House to support Trump's agenda.

Each said he would not support the Republican president’s tariffs or the war in Iran. Wahls said Hinson had “rubber stamped” Trump's approach by voting againsta resolution to curb the president's powers in the Iran war, which Wahls blamed for higher gas prices and farmer input costs, including diesel and fertilizer.

Turek criticized Hinson's support for Trump’s tax and spending cuts package. He said he supports no tax on tips and overtime, which he described as policies that support the middle class, but said the law's cuts to Medicaid and food assistance exacerbated a “crisis in this state, unique to Iowa.”

Both candidates criticized corruption in Washington and proposed higher taxes on corporations and wealthy Americans.

Wahls criticized Turek for missing several votes on bills related to reproductive health care, including one that bans most abortions after about six weeks of pregnancy and another that would have criminalized the death of an “unborn person.”

Turek explained his absence during the one-day special session vote on Iowa's abortion law, saying he had a serious medical issue related to his disability. He apologized in a newsletter after “to all of my constituents for not being able to cast my vote against this bill on your behalf.”

Turek's campaign said he was in Washington at a legislative summit for disability issues during the other vote.

Wahls also hit Turek for a vote he took in committee supporting a wide-ranging bill that included funding for centers that discourage women from getting abortions. Turek voted against the bill on the House floor.

Both candidates said they would work to codify access to abortion in the U.S. Senate.

While Wahls and Turek have raised and spent similar amounts, a Democratic political organization, VoteVets, has spent about $7 million to support Turek in the final stretch of the campaign. That's more than the two candidates have spent combined.

Turek, who is not a veteran, was born with spina bifida after his father’s exposure to chemicals while serving in the Vietnam War. The group has said Turek is uniquely positioned to advocate for veterans’ services, especially health care and military families.

Wahls has criticized the influx of cash as insiders in Washington trying to exert outsized influence.

Another group purchased more than $40,000 in airtime to support Wahls this week, according to filings. Iowa Action was funded by a lawyer with a California address who has also donated directly to Wahls' campaign.

Follow the AP’s coverage of the 2026 election at https://apnews.com/projects/elections-2026/.

This combination of file photos shows Iowa State Sen. and candidate for the Democratic nomination for U.S. Senate Zach Wahls speaking in Cedar Rapids, Iowa, Sept, 11, 2025, left, and Iowa state Rep. Josh Turek speaking in Des Moines, Iowa, April 8, 2026, right. (Nick Rohlman/The Gazette via AP, File)