India achieves 20% ethanol blending in petrol, five years ahead of schedule

NEW DELHI: India has successfully achieved 20 per cent ethanol blending in petrol in 2025, five years ahead of its original 2030 target, Petroleum and Natural Gas Minister Hardeep Singh Puri said. The 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.

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 Rs 1.36 lakh crore in forex
>> Paid Rs 1.18 lakh crore to farmers
>> Cut 698 lakh tonnes of CO₂ emissions
PM @narendramodi ji’s… pic.twitter.com/AkjNz1qZnZ

— Hardeep Singh Puri (@HardeepSPuri) July 23, 2025

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.

“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 Rs 1.36 lakh crore in forex >> Paid Rs 1.18 lakh crore to farmers >> Cut 698 lakh tonnes of CO₂ emissions PM @narendramodiji’s vision is powering energy security, farmer income and climate progress”, Puri said in a post on X.

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. (ANI)