Ethanol blending in petrol can help India save ₹38,000 crore annually: Oil Ministry
India’s E20 ethanol-blended petrol programme can save about $4 billion (₹38,000 crore) annually in crude oil imports. Since ESY 2014-15, ethanol blending has saved ₹1.97 lakh crore in foreign exchange, reduced 316 lakh tonnes of crude imports, and cut 952 lakh tonnes of CO₂ emissions.
The ethanol blended petrol (EBP) programme, under which 80 per cent petrol and 20 per cent ethanol is blended, can help reduce India’s crude oil import bill by roughly $4 billion, or around ₹38,000 crore on an annual basis.
For comparison, India spent $137 billion and $122 billion during FY25 and FY26, respectively, in purchasing crude oil.
Minister of State for Petroleum & Natural Gas Suresh Gopi in a written response in the Rajya Sabha said that as per the Roadmap for Ethanol Blending in India 2020-25, a successful E20 programme can save the country about $4 billion per annum.
The Minister emphasised that the EBP Programme has been implemented through a phased, scientifically validated and consultative process involving NITI Aayog, automobile manufacturers, oil marketing companies (OMCs), Automotive Research Association of India (ARAI), Society of Indian Automobile Manufacturers (SIAM), Indian Institute of Petroleum (IIP) and other technical institutions.
In India, the EBP Programme commenced with a pilot in 2001. The E15+ blended petrol has been in widespread use across the country for over three-and-a-half years and E19–E20 fuel for over two-and-a-half years, Gopi added.
More than 20 crore two-wheelers and over 3 crore petrol cars have been operating on these blends without any verified evidence of widespread engine failure or abnormal wear attributable to E20 fuel, the Minister said.
From Ethanol Supply Year (ESY) 2014-15 to ESY 2025-26 (up to June 2026), Ethanol blending by PSU oil marketing companies (OMCs) has resulted in foreign exchange savings exceeding ₹1.97 lakh crore, crude oil substitution of about 316 lakh tonnes and a reduction of around 952 lakh tonnes of CO₂ emissions. Ethanol supply year is from November to October.
In August last year, the Oil Ministry had said that at 20 per cent blending, it is expected that payment to the farmers in this year alone (FY26) will be to the tune of ₹40,000 crore and forex savings will be around ₹43,000 crore.
This was part of detailed responses by the Ministry over negative reactions by netizens on social media platforms about the EBP programme.
To Read more about Ethanol Industry & Bio Energy News continue reading Agriinsite.com
Source : The Hindu Businessline
