In May, ethanol blending with petrol exceeded 15% for the first time, driven by increased purchases from biofuel producers who have significantly expanded their production capacity in recent years.
According to the Monthly Ready Reckoner report from the Petroleum Planning & Analysis Cell (PPAC), ethanol blending with petrol reached 15.4% in May 2024, with cumulative blending from November 2023 to May 2024 at 12.6%. As of June 1, 2024, 14,611 PSU outlets out of a total of 81,698 are dispensing E20 Ethanol Blended MS.
PPAC, an office under the Ministry of Petroleum & Natural Gas (MoPNG), Government of India, collects and analyzes data on the Oil and Gas sector. It provides reports to various stakeholders based on data from Public Sector companies, Government agencies, and Private companies. With the increasing demand for energy and the shift towards renewables and biofuels, policymakers and analysts require updated information on industry trends.
PPAC recently reported that India is progressing towards achieving 20% blending by 2025. As of April 30, 2024, E20 petrol was available at 13,569 PSU outlets out of 81,529 total outlets. Successful pilot studies on E27 fuel and ethanol blended diesel fuel have also been conducted in the country.
To meet the 20% blending target by 2025, approximately 1,016 crore liters of ethanol are required, with a total ethanol requirement of 1,350 crore liters including other uses. To achieve this, an ethanol production capacity of about 1,700 crore liters is needed by 2025, assuming plants operate at 80% efficiency. The Government has estimated the ethanol demand necessary for 20% blending by 2025, considering the growth of petrol-based vehicles in the two-wheeler and passenger vehicle segments, as well as projected Motor Spirit (MS) sales.
