NewKerala.com

Key Points

India has quadrupled ethanol-blended petrol supply since 2019, reaching nearly 20% blending this year. The shift saved Rs 1.4 lakh crore in foreign exchange while cutting CO2 emissions significantly. Farmers benefited through timely sugarcane payments from ethanol-producing mills. The government accelerated its 20% blending target by five years through policy reforms.

Key Points: India Achieves 20% Ethanol Blending in Petrol Four Years Ahead of Target

  • Ethanol blending rose from 5% to 19.92% in June 2025
  • Farmers earned Rs 1.21 lakh crore from ethanol-linked sugarcane sales
  • CO2 emissions reduced by 717 lakh metric tonnes
  • Government advanced 20% blending target from 2030 to 2025-26
2 min read

Supply of ethanol-blended petrol jumps more than 4-fold in four years

India's ethanol-blended petrol supply surged 4x since 2019, hitting 20% blending in 2025, saving Rs 1.4 lakh crore in forex.

"Nearly 20% ethanol blending achieved in 2025, up from 1.53% in 2014 - Hardeep Singh Puri"

New Delhi, July 28

The ethanol-blended petrol supplied at the retail outlets of the public sector oil companies such as Indian Oil and Bharat Petroleum has shot up from 173 crore litres in Ethanol Supply Year (November-October) 2019-20 to more than 700 crore litres in Ethanol Supply Year (ESY) 2023-24, while there has also been a corresponding increase in blending percentage from 5 per cent in ESY 2019-20 to approximately 14.6 per cent in ESY 2023-24, the Parliament was informed on Monday.

Further, for the ongoing Ethanol Supply Year (ESY) 2024-25, as of June 30, 2025, a total of 661.06 crore litres of ethanol has been blended with petrol, achieving a blending percentage of 18.93 per cent, Minister of State for Petroleum and Natural Gas Suresh Gopi told the Rajya Sabha in a written reply to a question.

During the month of June 2025, ethanol blending of 19.92 per cent has been achieved. All retail outlets of Public Sector Oil Marketing Companies across the country, having petrol selling facilities, dispense E20 petrol, the minister added.

Highlighting India’s achievements in the biofuels sector, Petroleum Minister Hardeep Singh highlighted that nearly 20 per cent ethanol blending has been achieved in 2025, a significant rise from 1.53 per cent in 2014. This accomplishment has resulted in Rs 1.4 lakh crore in foreign exchange savings, substitution of 238 lakh metric tonnes of crude oil, a reduction of 717 lakh metric tonnes in CO2 emissions, and direct payments of Rs 1.21 lakh crore to farmers.

Farmers have gained as the sugar mills that are also producing ethanol can now afford to pay higher prices for sugarcane and clear pending dues in time.

Encouraged by the performance, the government decided to advance the target of 20 per cent ethanol blending in petrol from 2030 to ESY 2025-26.

In order to achieve the 20 per cent ethanol blending target by ESY 2025-26, the government has taken several measures which include a detailed Roadmap for Ethanol Blending in India, expansion of feedstock for the production of ethanol, remunerative price for procurement of ethanol under the EBP Programme, lowering of the GST rate to 5 per cent on ethanol for EBP Programme, and an amendment in the Industries (Development & Regulation) Act for free movement of ethanol across states for blending.

An interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country; regular floating of Expression of Interest (EoI) by Public Sector oil marketing companies for procurement of ethanol has also been undertaken.

- IANS

Share this article:

Reader Comments

A
Ananya R
While the numbers look good, I'm concerned about the impact on food security. Are we diverting too much sugarcane from food production to fuel? The government should ensure a balance between energy needs and food requirements.
V
Vikram M
Great initiative! But has anyone checked the mileage difference with E20 petrol? My car gives 2km less per liter since switching. The savings might not be as much as projected if vehicles consume more fuel.
S
Shreya B
The farmer benefits are the real game-changer here! ₹1.21 lakh crore direct payments is massive. Finally seeing policies that actually help our annadata. Hope this continues and sugar mills clear dues on time now.
K
Karthik V
Impressive numbers, but what about the infrastructure? Many petrol pumps in tier-2 cities still don't have proper E20 availability. The government should focus on equal distribution across all regions.
P
Priya S
The CO2 reduction figures are music to my ears! 🌱 This is exactly the kind of green initiative we need more of. Next step - electric vehicles powered by renewable energy. India can lead the world in sustainable energy solutions!
N
Nikhil C
Good progress, but we need transparency in how these ethanol prices are determined. There are reports of some mills getting preferential treatment. The system should be

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50