Ethanol-blended petrol supply grows 4 times in 4 years

India has seen a big increase in the use of ethanol-blended petrol in the last four years. The supply of this fuel, which is a mix of petrol and ethanol (made from sugarcane, grains, etc.), has grown from 173 crore litres in 2019–20 to more than 700 crore litres in 2023–24.

At the same time, the percentage of ethanol mixed in petrol has also gone up — from 5% in 2019–20 to about 14.6% in 2023–24. This information was shared in the Parliament on Monday.

For the current Ethanol Supply Year (2024–25), till June 30, 2025, around 661 crore litres of ethanol has already been mixed with petrol, reaching a blending level of 18.93%, said Suresh Gopi, Minister of State for Petroleum and Natural Gas, in a written reply to the Rajya Sabha.

In the month of June 2025 alone, the blending reached 19.92%. All fuel stations run by public sector companies like Indian Oil, Bharat Petroleum, and Hindustan Petroleum, are now supplying E20 petrol — petrol with 20% ethanol.

Big Benefits for the Country and Farmers

Petroleum Minister Hardeep Singh Puri shared that India has come a long way in biofuel use — from just 1.53% ethanol blending in 2014, to nearly 20% in 2025. This growth has helped the country in many ways:

• Saved Rs 1.4 lakh crore in foreign exchange (less oil imports)
• Reduced 238 lakh metric tonnes of crude oil use
• Reduced 717 lakh metric tonnes of carbon dioxide emissions
• Farmers received Rs 1.21 lakh crore directly from ethanol sales

Sugar mills, which are now making ethanol too, are earning more. This helps them pay sugarcane farmers better and clear old payments on time.

Target Advanced to 2025–26

Seeing the progress, the government has decided to achieve the 20% blending target earlier — by 2025–26 instead of the earlier goal of 2030.

Steps Taken by Government to Support Ethanol Use

To meet this new goal, the government has taken several important steps:

1. Created a full roadmap to guide ethanol blending across India
2. Allowed more raw materials (like grains, molasses, sugarcane juice) for making ethanol
3. Announced good purchase prices for ethanol to encourage producers
4. Reduced GST on ethanol from 18% to 5% under the Ethanol Blending Programme (EBP)
5. Amended law to allow free movement of ethanol across states

The government also started an interest support scheme to help set up more ethanol production units. Public Sector Oil Companies are regularly inviting bids (EoIs) to buy ethanol from producers.

This growth in ethanol blending is helping protect the environment, save money, and support Indian farmers—moving the country toward cleaner and self-reliant fuel use.