India Achieves 20% Ethanol Blending in Petrol, 5 Years Ahead of Target
India has successfully achieved 20% ethanol blending in petrol in 2025, five years ahead of its original 2030 target, announced Petroleum Minister Hardeep Singh Puri. Ethanol blending rose from just 1.5% in 2014 to 20% in 2025, significantly strengthening energy security while delivering economic and environmental gains.
Ethanol production surged from 38 crore litres in 2014 to 661.1 crore litres by June 2025. This shift has saved ₹1.36 lakh crore in foreign exchange and paid ₹1.96 lakh crore to distilleries, boosting the domestic biofuel sector. Farmers received ₹1.18 lakh crore, enhancing rural incomes and agricultural growth.
Environmentally, ethanol blending has reduced CO₂ emissions by 698 lakh tonnes. Ethanol is largely sourced from sugarcane, supporting Indian agriculture.
The Union Cabinet also approved a price hike for ethanol from molasses for the 2024-25 Ethanol Supply Year, applicable from November 1, 2024, to October 31, 2025, benefitting producers under the Ethanol Blended Petrol Programme.
