In July 2025, Union Minister Hardeep Singh Puri, Ministry of Petroleum & Natural Gas (MoPNG), announced that India has successfully achieved 20% ethanol blending in petrol in 2025, 5 years ahead of its 2030 target.
- He further highlighted that ethanol blending in petrol has increased from just 1.5% (in 2014) to 20% (in 2025), marking a 13-fold increase over the last 11 years.
Key Economic and Environment Benefits:
Savings in Foreign Exchange: Ethanol Production has increased significantly from 38 crore litres (in 2014) to 661.1 crore litres (by June 2025) which resulted in saving nearly Rs 1.36 lakh crore in foreign exchange by reducing Government of India (GoI)’s dependency on imported crude oil.
Strengthening Rural Income and Agriculture Sector: Between the same time period, GoI paid Rs 1.96 lakh crore to distilleries, promoting the growth of the domestic biofuel industry.
- In addition to that, Rs 1.8 lakh crore has been paid directly to farmers, thereby bolstering rural incomes and supporting the agricultural economy.
Reduction in CO2 Emissions: Ethanol-blending has a significant impact on the environment for instance: the increased use of ethanol-blended petrol has reduced Carbon Dioxide (CO2) emissions by 698 lakh tonnes.
What is Ethanol Blended Petrol (EBP) Programme?
Objective: It is an initiative to blend ethanol with petrol, aiming to reduce dependence on fossil fuels, boost energy security, and cut carbon emissions.
- Ethanol blending is mixing plant-based biofuel ethanol with petrol to produce cleaner, more sustainable fuel.
Launch & Expansion:Originally launched in 2003, the programme witnessed significant scale-up after 2014, aligning with India’s clean energy goals.
Nodal Ministries: Ministry of Petroleum and Natural Gas (MoPNG) in coordination with the Ministry of Agriculture & & Farmers’ Welfare(MoAFW) and Ministry of Food Processing Industries(MoFPI).
Key Revisions:
Revised Deadline to 2025-26: In March 2025, GoI has advanced its target for 20% ethanol blending in petrol to Ethanol Supply Year (ESY) 2025-26 from previous deadline of 2030.
Revised Ethanol Procurement Price for OMCs: In 2025, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister (PM) Narendra Modi, approved the revision of the ethanol procurement price for Public Oil Marketing Companies (OMCs) for the ESY 2024-25, starting from November 01, 2024 to October 31, 2025, under the Ethanol Blended Programme (EBP).
About Ministry of Petroleum & Natural Gas (MoPNG):
Union Minister- Hardeep Singh Puri (Rajya Sabha- Uttar Pradesh, UP)
Minister of State (MoS) – Suresh Gopi (Constituency- Thrissur, Kerala)
