Ethanol blending could save India Rs 38,000 cr annually: Suresh Gopi

India’s Ethanol Blended Petrol (EBP) Programme could reduce the country’s annual crude oil import bill by nearly US$4 billion (around Rs 38,000 crore) once 20% ethanol blending (E20) is implemented nationwide, according to Suresh Gopi, Minister of Petroleum and Natural Gas.

Responding to a question in the Rajya Sabha, Suresh Gopi said the estimate is based on the Roadmap for Ethanol Blending in India 2020–25. The initiative aims to reduce dependence on imported crude oil, strengthen energy security, support farmers and lower carbon emissions through increased use of domestically produced biofuels.

India, the world’s third-largest crude oil consumer and importer, spent around US$137 billion on crude imports in FY25 and US$122 billion in FY26, making import reduction a key policy objective.

Suresh Gopi said the EBP Programme has been implemented through extensive consultations with organisations including NITI Aayog, the Automotive Research Association of India (ARAI), the Society of Indian Automobile Manufacturers (SIAM), oil marketing companies and other technical institutions to ensure vehicle compatibility and build the necessary fuel infrastructure.

Suresh Gopi noted that ethanol blending has expanded gradually since a pilot project in 2001. E15-plus fuel has been in use for over three and a half years, while E19-E20 blends have been available for more than two and a half years. According to the ministry, over 20 crore two-wheelers and 3 crore petrol vehicles have used these fuels without verified evidence of widespread engine failures linked to ethanol blends.

Between Ethanol Supply Year 2014-15 and June 2026, ethanol blending generated cumulative foreign exchange savings of more than Rs 1.97 lakh crore, replaced 316 lakh tonnes of crude oil, and reduced 952 lakh tonnes of carbon dioxide emissions, the government said.

The Centre had informed the Parliament previously that India’s ethanol blending programme has delivered significant economic and environmental gains, with cumulative foreign exchange savings exceeding Rs 1.97 lakh crore since 2014-15.

The Centre had clarified that ethanol blending is not aimed at reducing petrol prices but at strengthening India’s energy security by cutting dependence on imported crude oil.