India Nears 20% Ethanol-Petrol Blend Ahead Of 2025-26 Target
India’s ethanol blending stands at 19.93% in July 2025, putting the country on track to meet its advanced 20% target a year ahead of schedule.
Published : August 11, 2025 at 7:11 PM IST
New Delhi: India is closing in on its ambitious 20% ethanol-petrol blending goal, with the national average touching 19.05% this ethanol supply year (ESY) and July’s figure hitting 19.93%, according to the Ministry of Petroleum and Natural Gas.
The National Policy on Biofuels, amended in 2022, had advanced the 20% target from 2030 to ESY 2025–26. Public sector oil marketing companies (OMCs) are driving the effort under the Ethanol Blended Petrol (EBP) Programme.
To ensure feedstock supply, the government has expanded raw material sources, approved 52 lakh metric tonnes of surplus FCI rice for ethanol production for both ESY 2024–25 and ESY 2025–26, allowed diversion of 40 LMT of sugar, and is promoting maize clusters near ethanol plants.
Officials say the push is not only about cutting crude oil imports but also about providing farmers new income streams, improving air quality, and reducing carbon emissions. Ethanol blending helps absorb agricultural surpluses while lowering dependence on fossil fuels, making it a strategic as well as environmental move.
Other measures include an administered ethanol pricing system, lower GST rates, interest subvention schemes for ethanol plants, and long-term purchase agreements between OMCs and dedicated producers. Programmes such as the Pradhan Mantri JI-VAN Yojana are also funding advanced biofuel projects.
Minister of State for Petroleum and Natural Gas Suresh Gopi shared these details in a written reply in the Rajya Sabha on Monday.
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