E20 petrol has saved Rs 1.90 lakh crore forex, blending is global practice: Govt
New Delhi, July 5
The Ethanol Blended Petrol Programme has emerged as a key pillar of India's energy transition and biofuel strategy, which has saved the country's foreign exchange by reducing crude oil imports, lowered greenhouse gas emissions, and strengthened farmers' incomes through new market opportunities, according to a government factsheet issued on Sunday.
From 2014-15 up to May 2026, the ethanol blending programme has resulted in a saving of over Rs 1.90 lakh crore in foreign exchange by substituting 310 lakh metric tonnes of imported crude oil and has generated additional earnings for farmers of more than Rs 1.6 lakh crore. Besides, it has cut carbon emissions of over 930 lakh metric tonnes, the factsheet states.
The factsheet highlights that India imports close to 88.5 per cent of the crude oil it consumes, which explains a great deal about why ethanol blending sits so high on the policy agenda. Every barrel of oil bought from abroad exposes the country to price swings and supply shocks that are entirely outside its control. Ethanol produced from Indian sugarcane, maize and rice offers a way to blunt that exposure using resources grown at home, the factsheet stressed.
The factsheet also highlights that ethanol blending is now a globally accepted practice with several major economies including the US, Brazil and Japan implementing the programme.
In the United States, E10 is the standard ethanol blended fuel nationwide, while E15 is expanding rapidly, backed by the US government. Millions of vehicles are already flex fuel capable. These can run on blends as high as E85.
Brazil remains the global leader in ethanol use. It currently mandates E27 as its standard petrol blend. This is being raised further to around 35 per cent. Over 80 per cent of new cars sold are flex fuel vehicles. These run on E27, E30, or pure hydrous ethanol.
Japan has brought ethanol into its fuel mix too. This was done through a phased E10 rollout.
Besides, countries including Canada, Thailand, and several European nations have also adopted ethanol blending as part of their clean fuel strategies, the factsheet added.
— IANS
Reader Comments
Good initiative, but we need to be careful about food vs fuel debate. If we divert too much sugarcane and rice to ethanol, what happens to food prices? The government should ensure a balance between energy needs and food security. Also, flex-fuel vehicles should become more affordable for the common man.
Impressive savings! But I wonder how the ethanol supply chain is managed in states like Maharashtra and UP during drought years. Also, the government should consider using more maize and cellulosic biomass instead of just sugarcane to avoid water-intensive crops.
As an environmentalist, I am happy about the 930 lakh metric tonnes carbon reduction. But we should also promote electric vehicles alongside ethanol. The blend percentage needs to be increased gradually without damaging older engines. Good step in right direction though! 🌱
I remember when we used to import so much crude oil and our economy would suffer with every price hike. This ethanol blending programme is a strategic masterstroke. We are reducing dependence on politically unstable regions for oil. Kudos to the government and the farmers who are making this happen!
Interesting comparison with Brazil and US. But we need to ensure that ethanol blending doesn't lead to higher fuel prices for consumers or affect sugar availability. Also, the infrastructure for E20 needs to be rolled out uniformly across all states, not just in urban areas.
K We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.