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EquityWireOil cos buy 2.8 bln ltr ethanol in Nov-Feb, achieve 18% target in 2024-25

Oil cos buy 2.8 bln ltr ethanol in Nov-Feb, achieve 18% target in 2024-25

This story was originally published at 13:12 IST on 18 March 2025
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Informist, Tuesday, Mar. 18, 2025

 

NEW DELHI – State-owned oil companies procured 2.79 billion litres of ethanol in the three months starting November, according to the Petroleum Planning & Analysis Cell. During Nov-Feb, oil companies achieved the 18% blending target set for the ethanol supply year 2024-25 (Nov-Oct). In February, oil companies procured 781 million litres of ethanol and achieved a 19.7% blending with petrol, the data showed.  

 

To reduce dependence on crude oil, the government has set a target of achieving 18% blending in 2024-25 and 20% in 2025-26. To achieve the 20% blending aim, India needs about 10.16 billion litres of ethanol. In the ongoing ethanol supply year, most ethanol is set to come from grain-based feedstock like rice and maize, which have the higher allocation.

 

On biofuel compatibility, Minister of State for Petroleum and Natural Gas Suresh Gopi said in a written reply to the Rajya Sabha, "According to the Roadmap for Ethanol Blending in India 2020-25, prepared by an interministerial committee, using 20% ethanol-blended petrol (E20) results in a marginal reduction in fuel efficiency for four-wheelers designed for E10 and calibrated for E20." 

 

However, with engine modifications, the efficiency loss can be reduced, he added. "The Society of Indian Automobile Manufacturers had informed the committee that with modifications in engine hardware and tuning, the efficiency loss due to blended fuel can be reduced. The Roadmap for Ethanol Blending in India 2020-25 has not identified any negative impact on engine health due to blending of ethanol in petrol up to E20," he said in the reply.

 

Under the blending programme, oil companies have saved more than INR 1.2 trillion of foreign exchange, about 62 million tonnes of carbon emissions, and INR 1.04 trillion has been paid to farmers up to January, the minister said.   End

 

Reported by Afra Abubacker

Edited by Tanima Banerjee

 

 

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