The government has set a target of 20 percent ethanol blending in petrol by the Ethanol Supply Year (ESY) 2025-26 and is likely to achieve it soon.
In the current ESY, ethanol blending in petrol reached 17.98% as of 28th February 2025. For the month of February 2025, public sector Oil Marketing Companies (OMCs) achieved an ethanol blending rate of 19.68%, according to the minister.
In response to an unstarred question in the Lok Sabha, Minister of Petroleum and Natural Gas, Suresh Gopi, said, “Public OMCs have achieved ethanol blending in petrol of 14.60% in ESY 2023-24 and 17.98% in ESY 2024-25 upto 28th February 2025. For the month of February 2025, ethanol blending of 19.68% was achieved by Public Sector OMCs. The National Policy on Biofuels, inter-alia advanced the target of 20% blending of ethanol in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030. The ‘Roadmap for Ethanol Blending in India 2020-25’ provides guidance to achieve the target of 20% ethanol blending in India by 2025-26.”
“The National Policy on Biofuels -2018 lays out the roles and responsibilities of all the stakeholders including Ministries/Departments/States with respect to biofuels to synergise efforts. It also provides an institutional mechanism for overall coordination, effective end-to-end implementation and monitoring of biofuel programmes. Various State Governments also provide incentives for encouraging ethanol production. Under the EBP Programme, since 2014-15, ethanol blending in petrol by Public Sector OMCs has resulted in approximate savings of more than Rs.1,20,000 crore of foreign exchange, Net CO2 reduction of about 626 lakh metric tonne and expeditious payment to farmers of more than Rs.1,04,000 crore upto January 2025,” he said while answering the estimated impact of increased ethanol blending on India’s energy security, greenhouse gas emissions and farmer incomes.
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