In May, ethanol blending with Petrol surpassed 15% for the first time, driven by increased purchases from biofuel producers, who have significantly boosted their production capacity in recent years.
According to the Petroleum Planning & Analysis Cell (PPAC) Monthly Ready Reckoner report, ethanol blending with Petrol was 15.4% during May 2024 and cumulative ethanol blending during November 2023- May 2024 was 12.6%. As on 01-06-2024, 14,611 PSU outlets out of 81,698 total PSU Retail Outlets are dispensing E20 Ethanol Blended MS.
Petroleum Planning & Analysis Cell (PPAC), an attached office of the Ministry of Petroleum &
Natural Gas (MoPNG), Government of India, collects and analyses data on the Oil and Gas sector. It disseminates many reports on the Oil & Gas sector to the various stakeholders. The data is obtained from the Public Sector companies, Government agencies as well as the Private companies. Given the ever-increasing demand for energy and transition of energy demand to renewables and Biofuels, Policy makers and Analysts need to be well informed about the updated trends in the Oil & Gas industry.
Recently, PPAC had reported that India is also on track to achieve 20% blending by 2025. And E20 petrol was available at 13,569 PSU outlets out of 81,529 total PSU Retail Outlets as on 30-04-2024. Successful Pilot Study on E27 Fuel and Ethanol Blended Diesel Fuel have also taken place in country.
To achieve the target of 20% blending by 2025, about 1016 crore litres of ethanol are required, and the total requirement of ethanol including for other uses is 1350 crore litres. For this, about 1700 crore liters of ethanol-producing capacity are required to be in place by 2025, considering the plant operates at 80% efficiency. The Government has estimated the demand for ethanol required for 20% blending by 2025, keeping in view the growth of petrol-based vehicles in two-wheeler and passenger vehicle segments and the projected sale of Motor Spirit (MS).
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