Ethanol blending saved Rs 1.08 trillion FOREX in a decade

The Central Government has informed that India’s ethanol blending program has significantly impacted foreign exchange savings and environmental sustainability. This is established according to the recent data presented by the Petroleum Ministry in the Parliament.

The Ministry has held that since 2014, the program has saved Rs 1.08 trillion in foreign exchange, reduced carbon emissions by 55.7 million metric tonnes, and replaced 18.5 million tonnes of crude oil.

As of September 2024, the government has achieved a 15% ethanol blend in all petrol sold nationally, with a target of increasing this to 20% by the Ethanol Supply Year (ESY) 2025-26. Ethanol-blended petrol, initially available at 27,900 public-sector retail outlets in 2014, is now sold at all outlets nationwide.

Farmers have received Rs 92,409 crore in cumulative payments under the program. With the shift to 20% ethanol blending, annual payments to farmers are expected to exceed Rs 35,000 crore. Oil marketing companies have paid distillers over Rs 1.45 trillion since 2014.

The availability of E20 petrol (20% ethanol blend) has expanded to over 15,600 outlets across the country. Additionally, the government introduced E100 fuel in March, composed of 93–93.5% ethanol, 5% petrol, and 1.5% co-solvent. Boasting a high-octane rating of 100–105, E100 is promoted as an ideal fuel for high-performance engines, offering improved efficiency and power.

Flex-fuel vehicles (FFVs), capable of running on ethanol blends up to E100, are a key component of the government’s push for sustainable and efficient transportation solutions.

Recently, Union Petroleum Minister Hardeep Singh Puri highlighted the government’s success in increasing ethanol blending in petrol, from 1.53% in 2014 to 16% in 2024 and held that the goal of reaching 20% will be met next year. He held that this achievement places India as the second-largest economy in biofuel blending, following Brazil.