New Delhi: The ethanol-blended petrol supplied at the retail outlets of the public sector oil companies such as Indian Oil and Bharat Petroleum has shot up from 173 crore litres in Ethanol Supply Year (November-October) 2019-20 to more than 700 crore litres in Ethanol Supply Year (ESY) 2023-24, while there has also been a corresponding increase in blending percentage from 5 per cent in ESY 2019-20 to approximately 14.6 per cent in ESY 2023-24, the Parliament was informed on Monday.
Further, for the ongoing Ethanol Supply Year (ESY) 2024-25, as of June 30, 2025, a total of 661.06 crore litres of ethanol has been blended with petrol, achieving a blending percentage of 18.93 per cent, Minister of State for Petroleum and Natural Gas Suresh Gopi told the Rajya Sabha in a written reply to a question.
During the month of June 2025, ethanol blending of 19.92 per cent has been achieved. All retail outlets of Public Sector Oil Marketing Companies across the country, having petrol selling facilities, dispense E20 petrol, the minister added.
Highlighting India’s achievements in the biofuels sector, Petroleum Minister Hardeep Singh highlighted that nearly 20 per cent ethanol blending has been achieved in 2025, a significant rise from 1.53 per cent in 2014. This accomplishment has resulted in Rs 1.4 lakh crore in foreign exchange savings, substitution of 238 lakh metric tonnes of crude oil, a reduction of 717 lakh metric tonnes in CO2 emissions, and direct payments of Rs 1.21 lakh crore to farmers.
Farmers have gained as the sugar mills that are also producing ethanol can now afford to pay higher prices for sugarcane and clear pending dues in time.
Encouraged by the performance, the government decided to advance the target of 20 per cent ethanol blending in petrol from 2030 to ESY 2025-26.
In order to achieve the 20 per cent ethanol blending target by ESY 2025-26, the government has taken several measures which include a detailed Roadmap for Ethanol Blending in India, expansion of feedstock for the production of ethanol, remunerative price for procurement of ethanol under the EBP Programme, lowering of the GST rate to 5 per cent on ethanol for EBP Programme, and an amendment in the Industries (Development & Regulation) Act for free movement of ethanol across states for blending.
An interest subvention scheme for enhancement and augmentation of ethanol production capacity in the country; regular floating of Expression of Interest (EoI) by Public Sector oil marketing companies for procurement of ethanol has also been undertaken.
