INDUSTRY
Ethanol-blending target of 20% in petrol achieved five years before deadline
- IBJ Bureau
- Jul 26, 2025
India has successfully achieved 20 per cent ethanol blending in petrol in 2025, five years ahead of its original target set for 2030, Petroleum and Natural Gas Minister Hardeep Singh Puri has announced.
Highlighting the country’s clean energy progress, the minister has noted that ethanol blending in petrol has risen from just 1.5 per cent in 2014 to 20 per cent in 2025 – a nearly 13-fold increase over 11 years.
Mr Puri emphasizes that the shift towards ethanol-blended fuel has not only bolstered energy security but also led to significant economic and environmental benefits. Ethanol production has surged from 38 crore litres in 2014 to 661.1 crore litres by June 2025.
As a result, India has saved approximately Rs 1.36 lakh crore in foreign exchange by reducing its dependency on imported crude oil. At the same time, Rs 1.96 lakh crore has been paid to distilleries, fuelling the growth of the domestic biofuel industry. Additionally, Rs 1.18 lakh crore has been disbursed to farmers, thereby enhancing rural incomes and supporting the agricultural economy.
The environmental impact has been equally significant. The increased use of ethanol-blended petrol has helped reduce carbon dioxide emissions by 698 lakh tonnes, contributing to India’s climate goals.
The ethanol used in blending is primarily derived from crops such as sugarcane, reinforcing the initiative’s role in supporting Indian agriculture.
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