Petroleum and Natural Gas Minister Hardeep Singh Puri has said that India has successfully achieved 20 per cent ethanol blending in petrol in 2025, five years ahead of its original target set for 2030. Highlighting the country’s clean energy progress, the minister noted that ethanol blending in petrol has risen from just 1.5% in 2014 to 20% in 2025, a nearly 13-fold increase over 11 years. Mr Puri emphasised 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 1.36 lakh crore rupees in foreign exchange by reducing its dependency on imported crude oil. At the same time, 1.96 lakh crore rupees have been paid to distilleries, fueling the growth of the domestic biofuel industry. Additionally, 1.18 lakh crore rupees have 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. Recently, the Union Cabinet approved a price hike for ethanol produced from molasses for the current marketing season.
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