India has successfully achieved 20% ethanol blending in petrol in 2025, five years ahead of its original target set for 2030, Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Wednesday.
Highlighting the country’s clean energy progress, the minister noted that ethanol blending in petrol has risen from just 1.5% in 2014 to 20% in 2025- a nearly thirteenfold increase over 11 years.
Puri emphasized that the shift towards ethanol-blended fuel has not only bolstered energy security but also led to significant economic and environmental benefits. Ethanol production has surged from 38 crore litres in 2014 to 661.1 crore litres by June 2025.
As a result, India has saved approximately ₹1.36 lakh crore in foreign exchange by reducing its dependency on imported crude oil. At the same time, ₹1.96 lakh crore has been paid to distilleries, fueling the growth of the domestic biofuel industry. Additionally, ₹1.18 lakh crore has been disbursed to farmers, thereby enhancing rural incomes and supporting the agricultural economy.
The environmental impact has been equally significant. The increased use of ethanol-blended petrol has helped reduce carbon dioxide emissions by 698 lakh tonnes, contributing to India’s climate goals.
“India hits 20% ethanol blending in petrol five years ahead of target. From just 1.5% in 2014 to 20% in 2025, this clean energy leap has: >> Saved ₹1.36 lakh crore in forex >> Paid ₹1.18 lakh crore to farmers >> Cut 698 lakh tonnes of CO₂ emissions. PM @narendramodi ji’s vision is powering energy security, farmer income and climate progress,” Puri said in a post on X.
The ethanol used in blending is primarily derived from crops such as sugarcane, reinforcing the initiative’s role in supporting Indian agriculture.
Recently, the Union Cabinet approved a price hike for ethanol produced from molasses for the current marketing season. The revised procurement prices for Public Sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme will apply for the Ethanol Supply Year (ESY) 2024-25, which runs from November 1, 2024, to October 31, 2025.
(ANI)