India has successfully achieved 20% ethanol blending in petrol in 2025—five years ahead of its initial 2030 target, Petroleum and Natural Gas Minister Hardeep Singh Puri announced recently.
The minister highlighted that India’s ethanol journey began modestly in 2014, with just 1.5% blending. In the span of 11 years, the country has seen a near thirteenfold increase, marking a major step toward cleaner and more sustainable fuel usage.
Puri underscored the far-reaching benefits of this milestone, including significant foreign exchange savings and a marked reduction in carbon emissions.
Ethanol production has grown substantially—from 38 crore litres in 2014 to 661.1 crore litres by June 2025. This expansion has played a key role in reducing India’s dependence on imported crude oil and has led to foreign exchange savings of ₹1.36 lakh crore.
In parallel, the government has disbursed ₹1.96 lakh crore to distilleries, fueling the growth of the biofuel industry, while ₹1.18 lakh crore has been paid directly to farmers—supporting rural livelihoods and strengthening the agricultural economy.
The shift to ethanol-blended fuel has also had a major environmental impact, helping avoid 698 lakh tonnes of CO₂ emissions so far.
In a post on X, Minister Puri stated: “India hits 20% ethanol blending in petrol five years ahead of target. From just 1.5% in 2014 to 20% in 2025, this clean energy leap has: >> Saved ₹1.36 lakh crore in forex >> Paid ₹1.18 lakh crore to farmers >> Cut 698 lakh tonnes of CO₂ emissions. PM @narendramodi ji’s vision is powering energy security, farmer income, and climate progress.”
Most of the ethanol used in the blending programme is domestically produced, largely sourced from crops like sugarcane—demonstrating the initiative’s alignment with India’s agricultural goals and its push for self-reliance in energy.
