India Hits 20% Ethanol Blending: What It Means For Billions In Savings And CO2 Reduction?

India is 5 years ahead in Ethanol blending in petrol in 2025. It is five years ahead of its original 2030 target of blending ethanol into petrol. 

From 1.5% to 20%: India’s Ethanol Milestone

The Petroleum and Natural Gas Minister highlighted that, from a modest beginning of just 1.5 per cent blending in 2014, India has now witnessed nearly a thirteenfold increase in ethanol integration over the span of 11 years.

Hardeep Puri also talked about how the move has led to foreign exchange savings and has cut CO2 emissions.

Ethanol production has surged dramatically, growing from 38 crore litres in 2014 to 661.1 crore litres by June 2025.

This remarkable growth has helped reduce the country’s dependence on imported crude oil, leading to a significant saving of Rs 1.36 lakh crore in foreign exchange.

At the same time, Rs 1.96 lakh crore has been paid to distilleries, fueling the expansion of the biofuel industry, while Rs 1.18 lakh crore has gone directly to farmers, thereby boosting rural income and strengthening the agricultural economy.

The environmental impact of this shift has also been profound, with 698 lakh tonnes of CO2 emissions being cut due to cleaner fuel adoption.

Boosting Domestic Agriculture, Ethanol Price Hike Approved

The ethanol used in the blending process is primarily sourced from Indian farms, particularly from crops like sugarcane, further reinforcing the initiative’s role in empowering domestic agriculture.

Recently, Union Cabinet raised the price of molasses-made ethanol for the current marketing season. Ethanol is produced from molasses, which is used in the blending of petrol.

The government has approved the revision of the ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25, starting from November 1, 2024, to October 31, 2025, under the Ethanol Blended Petrol (EBP) Programme. 

(Inputs from ANI)

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