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Informist, Monday, Aug. 18, 2025

MUMBAI – State-owned oil companies procured 7.22 billion litres of ethanol in the nine months from November, according to the Petroleum Planning & Analysis Cell. During Nov-Jul, the companies achieved 19.1% cumulative ethanol blending with petrol. In July, the companies procured 853 million litres of ethanol and achieved 19.9% blending with petrol, the data showed.

India has achieved 20% ethanol blending in petrol, five years ahead of original schedule of 2030, the government said last month. The government has been implementing the ethanol blending programme to reduce import dependency on crude oil and promote green mobility. Now, the government plans to gradually scale up to E25, E27, and E30 "in a phased, calibrated manner with the support of BIS standards and fiscal incentives," Petroleum Minister Hardeep Singh Puri said at the Pioneer Biofuels 360 Summit. The government is likely to release the roadmap for higher ethanol blends by August end, media reported Transport Minister Nitin Gadkari as saying. 

However, the biofuel ecosystem is facing pushbacks from all corners. There are concerns over fuel efficiency, vehicle compatibilty, and over diversion of food crops for fuel. Puri said there has not been a single reported case of engine failure or breakdown since E20 became the base fuel 10 months ago. "Some lobbies with vested interests are actively attempting to create confusion and derail India's ethanol revolution. However, such efforts will not succeed," he added.  

The government says concern over performance and mileage were anticipated as early as 2020 and were examined in detail by an inter-ministerial committee of the NITI Aayog, supported by research from Indian Oil Corp. Ltd., Automotive Research Association of India, and Society of Indian Automobile Manufacturers. 

Meanwhile, consumer calls for E20 to be cheaper than petrol have grown. Though E20 has lower-energy content, the government says the production cost of the biofuel has increased over the years due to hikes in ethanol prices. "Some concerns have been voiced that ethanol-blended petrol should be cheaper than non-blended fuel and that this cost advantage has not been passed on to the customers. They are referring to a NITI Aayog report. In 2020-21, when the report of NITI Aayog was prepared, ethanol was cheaper than petrol," the government said.  End

Reported by Afra Abubacker

Edited by Avishek Dutta

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