Ethanol Blended Petrol Programme- Q&A
·
The Ministry of Petroleum & Natural Gas issued
a detailed FAQ to address misinformation regarding the Ethanol Blended Petrol
(E20) Programme.
·
India achieved 20% ethanol blending (E20) in 2025–26,
ahead of the original 2030 target through a phased, two-decade-long programme.
·
The ethanol blending initiative began in 2001, with
major policy reforms under the National Policy on Biofuels, 2018 and extensive
stakeholder consultations.
·
The Government stated that automobile manufacturers,
ARAI, SIAM, Oil Marketing Companies (OMCs), and NITI Aayog were involved in
developing and validating E20 standards.
·
Extensive laboratory testing and field trials found no
evidence that E20 damages engines, rubber components, or fuel systems, including
in older vehicles.
·
Maruti Suzuki reported servicing over 2.8 crore
vehicles, including 1.5 crore older vehicles, without E20-related engine
or component failures.
·
E20 may reduce fuel economy by 3–5% in some vehicles
but offers:
o
Higher octane rating,
o
Better engine performance,
o
Cleaner combustion,
o
Around 40% lower lifecycle carbon emissions.
·
The Government said supplying pure petrol, E10, and
E20 simultaneously nationwide would be logistically difficult and significantly
increase costs.
·
Although ethanol is currently costlier than petrol at prevailing
crude oil prices, blending:
o
Reduces dependence on imported crude oil,
o
Protects consumers from global oil price volatility,
o
Enhances India's energy security.
·
Since the launch of the Ethanol Blended Petrol Programme,
India has:
o
Saved over ₹1.97 lakh crore in foreign exchange,
o
Replaced nearly 316 lakh metric tonnes of crude oil,
o
Reduced about 952 lakh metric tonnes of CO₂ emissions,
o
Transferred over ₹1.66 lakh crore to farmers.
·
The Government highlighted that India's fuel prices have
increased less than many major countries during recent global energy crises.
·
The programme supports farmers' incomes, environmental
sustainability, reduced oil imports, and national energy security, with the
Government urging consumers not to be misled by misinformation about E20 fuel.
[ABS News Service/10.07.2026]
The Ministry of Petroleum and Natural
Gas had already issued a detailed clarification on the Ethanol Blended Petrol Programme
through a press release on 23rd June, 2026, addressing the misinformation and providing
factual clarifications. Automobile manufacturers also issued clarifications regarding
the programme during a press conference held on 4th July, 2026.
Despite these clarifications, certain
concerns have continued to be raised regarding the Ethanol Blended Petrol Programme.
The following Frequently Asked Questions (FAQs) provide factual and evidence-based
responses to these concerns.
Q1: Why did India appear to rush its ethanol
blending targets when countries like Brazil took decades?
·
The first point that must be understood is that ethanol is not a new fuel.
We did not invent ethanol. More than a century ago, Henry Ford designed the
Model T to run on ethanol, and countries across the world, including Brazil and
the United States, have used ethanol blends for decades.
·
Equally important, India's ethanol blending programme did not begin under
the present government. The initiative has a long institutional history and
milestones (all are available in public domain – some are placed at Annexure-1)
·
A pilot ethanol blending programme was launched in 2001, formally announced
in 2004, and E5 (5% ethanol blending) was rolled out across several States by 2006.
·
The policy framework was subsequently notified in the Gazette of India in
January 2013 during the UPA government. These are matters of public record.
·
India had set a target of achieving 5% ethanol blending across 10 States
and Union Territories. Unfortunately, despite that ambition, blending remained stuck
at around 1.5% until 2014.
·
Nobody questioned ethanol as a fuel. That had already been settled globally.
The real challenge was how India could produce sufficient quantities of ethanol.
·
At that time, we depended almost entirely on sugarcane, a seasonal crop,
with an annual ethanol production capacity of roughly 400 crore litres. Such
production levels were inadequate even for modest blending targets.
·
Recognising this constraint, the Government fundamentally changed its approach.
With the launch of the National Policy on Biofuels in May 2018, the Government began
creating the ecosystem necessary to produce ethanol at scale. This became a genuine
whole-of-government mission.
·
The Ministry of Petroleum & Natural Gas, Department of Food & Public
Distribution, Ministry of Road Transport & Highways, Ministry of Heavy Industries,
Indian Railways and several other ministries worked in close coordination to expand
feedstocks, build infrastructure, support technology, align logistics, create demand
certainty and encourage investment.
A landmark step came in August 2021,
when India's Oil Marketing Companies IOCL, BPCL and HPCL issued Expressions of Interest
for establishing Dedicated Ethanol Plants (DEPs) in ethanol-deficit regions.
These projects transformed the investment
landscape because they offered:
·
assured long-term purchase agreements by Oil Marketing Companies;
·
tripartite financing arrangements with public sector banks through escrow
mechanisms, substantially reducing investment risk;
·
mandatory supply of ethanol exclusively for the Ethanol Blended Petrol Programme;
and
·
These plants naturally required nearly two years to come on stream. Capacity
could not appear overnight.
·
Another important milestone came in June 2021 when NITI Aayog published
its comprehensive roadmap on ethanol blending after extensive consultation with
automobile manufacturers, oil companies, agricultural experts and other stakeholders.
·
The report highlighted not only the environmental and energy security benefits
of ethanol but also the transformational impact on rural incomes and the agricultural
economy.
·
At that stage, India's requirement for 10% blending was ~500- 600
crore litres of ethanol annually. As fresh investments materialised and production
capacity expanded, it became evident that the country would soon be capable of producing
nearly 1,200 crore litres. Once the supply side had been secured, it became
both logical and responsible to aspire for 20% blending.
·
So, the suggestion that India "rushed" into ethanol blending is
simply not borne out by facts.
·
This has been a journey spanning over two decades from pilot projects in
2001, policy notification in 2013, institutional reforms after 2018, massive investments
beginning in 2021, and then a carefully calibrated, phased increase in blending
levels.
·
All the stakeholders including automobile manufacturing companies, testing
agencies, OMCs, DFPD etc were consulted before rollout.
·
The progression has been deliberate:
|
Ethanol Supply Year |
Blending Percentage / Status |
|
ESY 2020-21 |
~8.1% |
|
ESY 2021-22 |
10.0% |
|
ESY 2022-23 |
12.1% |
|
ESY 2023-24 |
14.60% |
|
ESY 2024-25 |
19.20% |
|
ESY 2025-26(Nov-June 2026) |
20% |
·
Brazil took decades because it was building the world's first large-scale
ethanol ecosystem.
·
India had the advantage of learning from global experience, adopting proven
technologies, coordinating across ministries and creating a robust investment framework.
We compressed the implementation timeline not by compromising science or safety
but by improving governance, planning and execution.
·
That is the real story behind India's ethanol success is a carefully planned,
staggered, gradual and stepwise transition and not a hasty or overnight decision.
Q2: Why don't consumers have the choice
of buying pure petrol, E10 or E20? And what about older vehicles that are labelled
as only E10 compatible?
·
When India decided to move towards higher ethanol blends, the automobile
industry was involved at every stage. For E10 compatibility, manufacturers were
consulted well in advance as early as 2020-21. India achieved its E10 target (10%
ethanol blending in petrol) in June 2022, five months ahead of the date in ESY 2020-21.
·
For E20, an even more rigorous process was followed. Extensive consultations
were held with automobile manufacturers, component suppliers, testing agencies and
research institutions. The roadmap of the IMC
had been in the public domain from 2021 and laid out a calibrated path to reaching
E-20.
·
Every aspect was examined starting from material compatibility, engine
calibration, fuel systems, drivability, durability, emissions and fuel efficiency.
·
Before E20 was rolled out, the Government undertook several rounds of detailed
consultations with all the stakeholders such as automobile manufacturers, technical
experts, testing agencies and other stakeholders to ensure readiness across the
ecosystem. Had automobile manufacturers not been fully satisfied with the results,
they would never have stood behind the product or honoured vehicle warranties.
The fact that virtually every manufacturer today is honoring warranty for all vehicles
(old or new) is because they have been part of the consultation.
·
Further, Maruti Suzuki serviced 2.84 crore vehicles during FY 2025-26,
including 1.5 crore older, non-E20-certified vehicles, and reported no
E20-linked corrosion, abnormal wear or component-life damage. Hero MotoCorp
has reported similar field experience. This real-world evidence is far more reliable
than isolated anecdotes.
·
It is true that in some vehicles there may be a 3-5% reduction in fuel
economy. But mileage is only one parameter.
·
E20 offers a significantly higher-octane rating, superior anti-knock characteristics,
faster combustion, better pickup, smoother acceleration and cleaner engine operation.
·
It produces negligible particulate emissions and substantially reduces lifecycle
carbon emissions by around 40%.
·
In short, it is a cleaner, higher-quality and more efficient fuel than
either E10 or pure petrol.
·
So, the real question is this: if a cleaner, faster and less-polluting
fuel is available, why would we deliberately choose an inferior alternative?
·
The suggestion that every petrol pump should stock pure petrol, E10 and E20
simultaneously also ignores the realities of India's fuel distribution network.
·
India operates over one lakh retail outlets, supported by an extensive
network of refineries, terminals, depots and pipelines.
·
Maintaining multiple grades of base petrol across this vast supply chain
would create an enormous logistical challenge, increase handling costs, complicate
inventory management and reduce operational efficiency.
·
People often cite premium petrol as an example. That comparison is misplaced.
Premium fuels are niche products sold in limited quantities at a significant price
premium because specialised performance-enhancing additives are blended into them.
They are not separate nationwide base fuel streams. Running parallel nationwide
supply chains for pure petrol, E10 and E20 would be an entirely different proposition.
·
There is another aspect that cannot be ignored.
·
Over the past several years, public sector banks have financed nearly ₹1
lakh crore/yr of investments in ethanol production and associated infrastructure.
Dedicated ethanol plants, distilleries, storage facilities and logistics networks
have been created to meet India's blending targets.
·
If, after creating this capacity, we were to arbitrarily revert to E10, what
happens to these investments? What happens to the surplus production capacity? What
happens to thousands of crores invested by farmers, cooperatives, entrepreneurs,
financial institutions and public sector companies in good faith based on a national
policy?
·
Public policy must balance consumer interest with energy security, environmental
sustainability, farmer welfare and prudent use of national resources.
·
Would anyone today ask us to bring back the old blue DTC buses instead of
modern public transport? Would anyone argue that we should return to pothole-ridden
roads because they were familiar? Would Delhi replace cleaner transport fuels with
more polluting alternatives?
·
Progress means embracing better technology.
·
E20 represents cleaner combustion, lower emissions, reduced crude oil imports,
higher incomes for Indian farmers and greater energy security for the nation.
·
Once a superior fuel has been scientifically validated, extensively tested
and accepted by the automotive industry, the objective should be to move forward
with confidence not to retreat to an inferior standard.
Q3: If ethanol is blended with petrol,
why isn't E20 cheaper than E10 or pure petrol?
|
Feed Stock |
Ethanol Supply Year (Price in Rs.) |
||||
|
21-22 |
22-23 |
23-24 |
24-25 |
25-26 (Provisional) |
|
|
C – Molasses |
46.66 |
49.41 |
56.28 (Incentive of 6.87) |
57.97 |
57.97 |
|
B – Molasses |
59.08 |
60.73 |
60.73 |
60.73 |
60.73 |
|
Sugarcane Juice/Sugar/Syrup |
63.45 |
65.61 |
65.61 |
65.61 |
65.61 |
|
Damaged Food Grains |
52.92 |
64.0@ |
64.00 |
64.00 |
64.00 |
|
FCI Rice |
56.87 |
58.5 |
58.50 |
58.50 |
60.32 |
|
Maize |
52.92 |
66.07@ |
71.86 (Incentive of 5.79) |
71.86 |
71.86 |
·
Today, the Government purchases ethanol at remunerative prices so that Indian
farmers are fairly compensated. Take maize-based ethanol. We have progressively
increased its procurement price and today it is around ₹71.86 per litre,
even before GST, transportation, storage and depot handling costs.
·
Therefore, if international crude oil is trading at around US$70 per barrel,
E20 is actually costlier to produce than pure petrol.
·
If crude rises to US$120–130 per barrel, the economics naturally reverse
and ethanol becomes even cheaper.
·
So, the question should not be, "Why isn't E20 cheaper?"
·
The real question is, "How did India manage to protect consumers
from the full impact of volatile global crude prices?"
·
The answer is simple.
·
Nearly 20% of every litre of petrol sold in India today is domestically
produced ethanol. That ethanol is procured at around ₹71 per litre,
a price that does not fluctuate every morning with Brent crude, geopolitical
conflicts or shipping disruptions.
·
In other words, one-fifth of your fuel tank is insulated from international
oil volatility. That is one of the principal reasons India witnessed one of
the most moderated increases in retail fuel prices despite unprecedented global
disruptions.
·
Ethanol blending is therefore not about making petrol cheaper on a particular
day. It is about reducing India's exposure to imported crude oil.
·
As a result, India recorded the lowest fuel price hike among major economies
and its neighbouring countries over the past four years
|
Petrol (Rs/Ltr) |
Diesel (Rs/Ltr) |
|||||
|
Country |
June-22 |
June-26 |
(%) |
June-22 |
June-26 |
(%) |
|
Pakistan |
92.64 |
129.48 |
39.77 |
79.98 |
130.51 |
63.18 |
|
Sri-Lanka |
90.43 |
123.59 |
36.66 |
86.13 |
115.90 |
34.57 |
|
Nepal |
113.99 |
137.19 |
20.35 |
103.22 |
142.25 |
37.81 |
|
Bangladesh |
76.97 |
109.82 |
42.69 |
71.60 |
90.21 |
26 |
|
Italy |
166.85 |
197.52 |
18.39 |
161.38 |
207.84 |
28.79 |
|
Germany |
163.18 |
194.26 |
19.05 |
167.70 |
184.55 |
10.04 |
|
France |
174.18 |
205.08 |
17.74 |
171.06 |
203.95 |
19.23 |
|
India (Delhi) |
96.72 |
102.12 |
5.58 |
89.62 |
95.20 |
6.23 |
India still stands out as the country
as compared to other countries with lowest hike in fuel prices since the West Asia
crisis started as can be seen through the table.
(Prices in INR)
|
Petrol (Rs/Ltr) |
Diesel (Rs/Ltr) |
|||||
|
Country |
March 2026 |
June 2026 |
(%) |
March 2026 |
June 2026 |
(%) |
|
Pakistan |
86.85 |
130.61 |
50.39 |
91.64 |
130.27 |
42.15 |
|
Sri-Lanka |
86.79 |
125.81 |
44.96 |
83.24 |
117.98 |
41.73 |
|
Nepal |
99.28 |
136.89 |
37.88 |
89.79 |
141.93 |
58.07 |
|
Bangladesh |
87.08 |
109.62 |
25.88 |
75.07 |
90.04 |
19.94 |
|
India (Delhi) |
94.77 |
102.12 |
7.76 |
87.67 |
95.20 |
8.59 |
Source (PPAC)
(Prices in INR)
|
Petrol (Rs/Ltr) |
Diesel (Rs/Ltr) |
|||||
|
Country |
March 2026 |
May2026 |
(%) |
March 2026 |
May 2026 |
(%) |
|
USA |
89.14 |
113.09 |
26.87 |
120.59 |
141.39 |
17.25 |
|
France |
203.42 |
232.30 |
14.20 |
213.91 |
234.12 |
9.45 |
|
Italy |
187.66 |
212.80 |
13.40 |
207.69 |
224.37 |
8.03 |
|
India |
94.77 |
94.77 |
- |
87.67 |
87.67 |
- |
Source (PPAC) Data for June shall be available on 11th
July,2026
Every litre of ethanol blended means:
·
less imported crude,
·
less foreign exchange outflow,
·
more income for Indian farmers,
·
greater price stability for consumers, and
·
stronger national energy security.
That is why the Ethanol Blended Petrol
Programme (since ESY 14-15) has already:
·
saved over ₹1.97 lakh crore in foreign exchange,
·
substituted nearly 316 lakh metric tonnes of crude oil,
·
reduced around 952 lakh metric tonnes of CO₂ emissions, and
·
transferred more than ₹1.66 lakh crore directly into the hands
of Indian farmers.
·
Our farmers are no longer merely Annadatas; they have become Urjadaatas,
contributing directly to India's energy security.
Q4: There are concerns that E20 damages
rubber components, affects engines in older vehicles, and many vehicle manuals specifically
mention "E10 compatible". Should owners of older vehicles be worried?
·
Unfortunately, as India's ethanol programme has grown, so has the misinformation
surrounding it.
·
Ever since India introduced E85, several lobbies with vested interests have
attempted to create unnecessary fear. Every few months, a new rumour surfaces: rubber
hoses will fail, engines will seize, fuel tanks will corrode. None of these claims
stand the test of scientific evidence.
·
Let us look at the facts.
·
India's transition to E20 was not an overnight decision.
·
Before the roadmap was finalized, the Government constituted expert committees
involving automobile manufacturers, ARAI, SIAM, oil companies and technical institutions.
·
In 2021, NITI Aayog published a comprehensive roadmap after extensive
consultations with all stakeholders. That very roadmap also addressed the transition
from E10 to E20 and the preparedness required from the automobile industry. Vehicle
manufacturers were therefore fully aware of the policy direction years in advance.
·
If manufacturers had not been involved, they would never have certified E20-compatible
vehicles or honoured warranty obligations.
·
E15+blends has now been in operation across India for over 3.5 years
·
Before rollout of E20, it underwent extensive scientific testing, followed
by extensive field validation covering engine durability, fuel systems, material
compatibility, corrosion resistance, drivability, emissions and performance.
·
But laboratory testing is only one part of the story.
·
The biggest proof comes from the real world.
·
Maruti Suzuki alone serviced nearly 2.5 crore vehicles, including around
1.5 crore older vehicles that were never originally certified as E20-compatible.
If E20 were genuinely
damaging rubber components, fuel lines or engines, we would have witnessed lakhs
of warranty claims, widespread component failures and an avalanche of complaints
across the country.
·
That has simply not happened.
·
Another concern relates to vehicle manuals carrying the words "E10
compatible."
·
People must understand what those labels mean.
·
A vehicle manual reflects the fuel specification prevailing at the time
the vehicle was homologated and certified. It does not mean the vehicle suddenly
becomes unsafe if fuel standards evolve later after extensive scientific testing,
engineering validation and regulatory approval. If that logic were applied universally,
no country would ever be able to upgrade its fuel standards.
·
The transition from E10 to E20 was therefore based not on assumptions, but
on years of testing, manufacturer consultations and field experience.
·
India's ethanol supply chain is one of the most tightly regulated fuel supply
systems in the country. Ethanol and blended petrol conform to strict BIS specifications
and undergo quality checks at every stage from the distillery to the depot to the
retail outlet.
·
Any procedural lapse anywhere in the supply chain be dealt with firmly. Chief Secretaries of the States have been
requested to ensure strict enforcement and take an iron hand against any instance
of adulteration. There can be zero tolerance for lapses that compromise fuel
quality.
·
E20 is a safe, cleaner, proven and scientifically validated fuel that Indian
consumers can use with confidence. Its quality, safety and compatibility have been
validated and assured by all responsible stakeholders, including automobile manufacturers,
testing and homologation agencies, Oil Marketing Companies, and regulatory authorities.
·
Consumers are therefore advised not to be misled by misinformation, scaremongering
or unverified content circulating on social media.
Annexure-I
Ethanol Blending in India: Key Milestones
(2000–2026)
2000–2010
·
The Ethanol Blended Petrol (EBP) Programme was formally launched for
supply of 5% ethanol-blended petrol in 9 States and 4 Union Territories; ethanol
blending also featured for the first time in the Auto Fuel Policy, 2003.
Source: PIB PRID 2277210 – confirms EBP “launched in 2003”
·
MoPNG notification extended mandatory 5% EBP to an all-India basis across
20 States and 8 Union Territories (excluding parts of the North-East and Jammu
& Kashmir).
Source: Press Information Bureau
·
In a written reply to the Rajya Sabha, the Government stated that the 5%
EBP Programme had not yet stabilised because of inadequate ethanol supplies,
inter-State movement restrictions and State taxation issues.
Source: Press Information Bureau
2010–2020: Policy Consolidation &
Acceleration
·
December 2014 -Re-introduced administered price mechanism for ethanol to
be procured under the EBP Programme; opened alternative route for ethanol production,
directed Oil PSEs to set up bio-refineries
·
2014-15 –Steps taken towards simplifying the tendering processes
·
May 2016–Industries (Development and Regulation) or IDR Act amended on 14th
May 2016 to clarify on the roles of Central and State Government for continuous
supply of ethanol to be blended with petrol
·
June 2018 - Notified forward-looking and updated National Policy on Biofuels,
2018 involving all stakeholders
·
July 2018 -Interest Subvention Scheme to improve and increase ethanol production
capacity in the Country. GST on Ethanol lowered from18% to 5%
·
2018-19 -Allowed conversion of B heavy molasses, sugarcane juice and damaged
food grains to ethanol.
·
April 2019 -Extended EBP Programme to the whole of India except the Island
UTs of Andaman Nicobar and Lakshadweep
·
September 2019 - New sources, sugar and sugar syrup, introduced for ethanol
production at fixed remunerative price
·
October 2019 - Published “Ethanol Procurement Policy on a long-term basis
under EBP Programme”
·
August 2020-One time registration of ethanol suppliers for long term, including
giving them visibility of ethanol demand for 5 years.
·
September 2020 - OMCs started to provide Off-take guarantee letter and consent
to sign tripartite agreement with ethanol suppliers and bankers to support the ethanol
capacity expansion projects.
·
October 2020 - Further ease of tender conditions by OMCs like one time document
submission, quarterly bank guarantees, multiple transportation rate slabs and transportation
rates being linked to Retail Selling Price (RSP) of diesel, reduction in security
deposit and applicable penalty on non-supplied quantity etc.
·
November 2020 - Approval of NBCC to utilise maize for ethanol production.
Interest subvention scheme for augmentation of ethanol production capacity extended
to grain-based distilleries.
·
December 2020 - OMCs have increased their ethanol storage capacity from 5.39
Crore litres in November 2017 to 16.9 Crore litres till December 2020, thereby providing
ethanol storage cover of over 20 days at their depots.
Source:https://www.pib.gov.in/FactsheetDetails.aspx?Id=148564®=48&lang=2 2021
·
Prime Minister released the “Roadmap for Ethanol Blending in India 2020–25”
in June 2021, prepared by an inter-ministerial committee, laying out a detailed
pathway to 20% ethanol blending. The roadmap also set an intermediate milestone
of 10% blending by November 2022.
·
Ethanol blending with petrol stood at 302.3 crore litres in ESY 2020–21,
with the blending percentage rising steadily from 1.53% (2013–14) in preceding years.
Source: PIB PRID 2043042 – “Increase in Blending of Ethanol” (Lok
Sabha reply)
·
Media reports (citing government sources) referenced an E100 pilot initiative
in Pune around this period as part of efforts to demonstrate higher ethanol-blend
fuels.
Source: Press Information Bureau
·
BIS notifies fuel standards for E12 and E15 Source (Press Information Bureau)
·
The Government announced that E20 fuel would be made available from April
2023. Source: Press Information Bureau
2022
·
Public Sector Oil Marketing Companies (OMCs) achieved the target of 10%
ethanol blending in petrol in June 2022 — five months ahead of the November
2022 target set under the Roadmap, during ESY 2021–22.
Source: Press Information Bureau
·
Minister (PNG) stated ethanol blending had risen from 0.67% in 2013 to
10% in May 2022, and confirmed that the 20% blending target had been advanced
by five years, from 2030 to 2025, at SIAM's International Conference on Biofuels.
·
This achievement, over the preceding 8 years, translated into a forex impact
of over ₹41,500 crore, a reduction of 27 lakh MT in GHG emissions,
and payments of over ₹40,600 crore to farmers.
Source: PIB PRID 1831289
·
Minister (PNG)announced India's ethanol demand was poised to grow to 10.16
billion litres by 2025, and that the number of petrol pumps selling biofuels
had risen threefold from 29,897 (2016–17) to 67,641 (2021–22).
Source: PIB PRID 1869250
·
Minister (PNG) urged automobile manufacturers to rapidly expand production
of flex-fuel engine vehicles to complement the availability of E20 fuel and support
India's biofuel transition.
Source: Press Information Bureau
·
National Policy on Biofuels, 2018 was amended in 2022 to formally advance
the 20% ethanol blending deadline to Ethanol Supply Year (ESY) 2025–26, widening
eligible feedstocks to include damaged food grains, broken rice, and food grains
unfit for human consumption.
Source: PIB PRID 2043042 – “Increase in Blending of Ethanol” (Lok
Sabha reply, feedstock list)
2023
·
Minister (PNG) announced that E20 fuel would be available nationally from
April 2023, confirming India was ready from the supply side to launch the blend.
Source: PIB PRID 1869250
·
Hon’ble Prime Minister launched E20 fuel at 84 retail outlets of OMCs
across 11 States/UTs on 6 February 2023 at India Energy Week, Bengaluru, in
line with the Ethanol Blending Roadmap. Media reports of the PM's remarks additionally
cited a first-phase rollout across 15 cities, with pan-India expansion targeted
by 2025.
·
India led the launch of the Global Biofuels Alliance (GBA) on 9 September
2023 on the sidelines of the G20 Summit in New Delhi, announced by Prime Minister
Narendra Modi along with leaders of the USA, Brazil, Italy, Argentina, Singapore,
Bangladesh, Mauritius and UAE, to foster international cooperation on sustainable
biofuels.
·
Blending with petrol rose to more than 500 crore litres in ESY 2022–23,
taking the blending percentage to 12.06%.
Source: PIB PRID 2043042 – “Increase In Blending Of Ethanol” (Lok
Sabha reply, MoS Suresh Gopi)
·
In a written reply in the Rajya Sabha, the Government informed Parliament
that Public Sector OMCs had been selling E20 petrol since 6 February 2023
and that more than 1,900 retail outlets across the country were already dispensing
E20 fuel Source: Press Information Bureau
2024
·
Ethanol blending crossed 13% in ESY 2023–24 (approx. 545.05 crore
litres blended as of 31 August 2024), and closed the year at 14.60% for ESY 2023–24,
per Lok Sabha replies by the Ministry of Petroleum & Natural Gas.
Source: PIB PRID 153363 (13% datapoint)
| PIB PRID 2113234 (14.60% year-end figure)
·
Ethanol production capacity crossed 1,623 crore litres (as of 18 September
2024), more than doubling over the preceding four years.
Source: PIB PRID 153363
·
In August 2024, the Union Cabinet, chaired by Hon’ble Prime Minister Narendra
Modi, approved the modified Pradhan Mantri JI-VAN Yojana to keep pace with
developments in biofuels and attract greater investment, including in Sustainable
Aviation Fuel (SAF) projects.
Source: PIB PRID 153363
·
At the 7th G-STIC Delhi Conference, Minister (PNG) highlighted India's ethanol
blending progress and stated the Government had begun examining goals beyond
the 20% target.
Source: PIB PRID 153363
·
E20 petrol available at over 15,600 retail outlets.
Source: Press Information Bureau
·
Lok Sabha Unstarred Question No. 2859 (12 December 2024) confirmed blending
had reached 12.06% in ESY 2022–23 and approx. 14.6% in ESY 2023–24.
Source: Lok Sabha Unstarred Question No. 2859, 12 December 2024
·
Clarification issued on engine performance with ethanol.
Source: Press Information Bureau
2025
·
India achieved the 20% ethanol blending (E20) target in 2025 — five
years ahead of the original 2030 deadline set under the National Policy on Biofuels,
2018.
Source: PIB PRID 150699 – Ethanol Blending in India (factsheet)
·
Minister Hardeep Singh Puri stated ethanol blending in petrol had risen from
1.5% in 2014 to 20% in 2025, a nearly 13-fold increase over 11 years, and
that ethanol production had grown from 38 crore litres (2014) to 661.1 crore
litres by June 2025.
Source: PIB PRID 2154355 – “India's Ethanol Journey is Unstoppable”
·
As on 31 July 2025, OMCs had achieved average ethanol blending of 19.05%
during ESY 2024–25, with July 2025 alone recording 19.93% blending. Government
approved allocation of 52 Lakh Metric Tonnes (LMT) of surplus FCI rice for
ethanol production for ESY 2024–25 and ESY 2025–26 (up to 30 June 2026), alongside
diversion of 40 LMT of sugar for ESY 2024–25.
Source: PIB PRID 2155110 – Government speeds up ethanol blending
·
In a Lok Sabha reply, the Government stated that ethanol blending had increased
from 10% (ESY 2021–22) to 12.06% (ESY 2022–23), 14.60% (ESY 2023–24)
and 17.98% up to 28 February 2025 (ESY 2024–25). The Government highlighted
the key policy interventions driving this growth, including expansion of approved
feedstocks, administered ethanol pricing, reduction of GST on ethanol for blending
to 5%, implementation of the Ethanol Interest Subvention Scheme (EISS), Long-Term
Offtake Agreements (LTOAs) for Dedicated Ethanol Plants, and advancement of the
E20 blending target from 2030 to ESY 2025–26.
Source: Press Information Bureau
·
At the Pioneer Biofuels 360 Summit, Minister (PNG) declared “India's ethanol
journey is unstoppable,” noting no case of engine failure or breakdown had
been reported since E20 became the base fuel, and outlined a phased move towards
E25, E27 and E30.He also emphasized guaranteed ethanol pricing, inclusion
of multiple feedstocks, expansion of distillation capacity and coordinated action
by OMCs as the key enablers of India's ethanol programme
Source: PIB PRID 2154355
·
Rajya Sabha was informed (18 December 2025) that more than 1,000 crore
litres of ethanol were blended during ESY 2024–25, achieving average blending
of 19.24%, with October 2025 blending at 19.97%.
Source: Rajya Sabha reply, 18 December 2025 (DD News report)
·
Cumulative farmer payments under EBP crossed ₹1.25 lakh crore
and forex savings crossed ₹1.44 lakh crore (up to July 2025), per a
written reply by Minister (PNG) in the Lok Sabha.
Source: PIB PRID 2113234 – Measures beyond 20% blending
2026
·
From April 2026, all Bharat Stage-VI (BS-VI) vehicles are required to fully
meet E20 emission standards, and all petrol sold across India is mandated
to contain 20% ethanol (E20) meeting a minimum Research Octane Number (RON) of 95.
Source: PIB PRID 2268671 – “Flex Fuel Vehicles offer India a practical
solution…: Sh. Hardeep Singh Puri”
·
India's ethanol production capacity was reported to have scaled to nearly
20 billion litres, well above the approximately 11 billion litres required
to sustain the E20 mandate.
Source: PIB PRID 2277210 – Fact-check on misleading E20 claims
·
On World Environment Day (5 June 2026), Minister (PNG) led the launch event
for E85 flex-fuel promotion at an IOCL retail outlet, positioning flex-fuel
vehicles alongside EVs in India's low-carbon mobility mix.
Source: PIB PRID 2268671
·
At the launch of Hero MotoCorp's first flex-fuel motorcycles (Splendor+
and HF Deluxe Flex Fuel) in New Delhi, Minister (PNG) with Union Minister Nitin
Gadkari, described flex-fuel mobility as “a new chapter in India's energy history,”
citing Brazil's experience with higher ethanol blends and noting Government is examining
supportive pricing frameworks for E85 adoption.
Source: PIB PRID 2268671
·
ARAI Reaffirms Rigorous Validation Standards for E20 Ethanol-Blended Fuel
and Vehicle Performance.
Source:https://www.pib.gov.in/PressReleasePage.aspx?PRID=2281084®=48&lang=2
·
In a reply to Lok Sabha Unstarred Question No. 6315 on "Impact of Ethanol
Blending on Vehicles and Consumers", the Government stated that the Inter-Ministerial
Committee (IMC) constituted on 26 December 2020 under NITI Aayog had comprehensively
examined vehicle compatibility and mileage aspects of E20 fuel. The assessment was
supported by research conducted by Indian Oil Corporation Ltd. (IOCL), the Automotive
Research Association of India (ARAI) and the Society of Indian Automobile Manufacturers
(SIAM). The Government informed Parliament that extensive field trials found no
compatibility issues or adverse impact on vehicle performance with E20.