Lok Sabha Question No. 1964 (UNSTARRED), answered on 2025-12-11
Subject: Mixing of Ethanol in Petrol
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Arun Govil

## LOK SABHA UNSTARRED QUESTION NO - 1964

TO BE ANSWERED ON 11 th  DECEMBER 2025

## MIXING OF ETHANOL IN PETROL

†1964. Shri Arun Govil:

## पेट Ō ोिलयम एवं Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the Government imports up to 85% of the crude oil demand in the country and whether the Government is working on various blending alternatives like solar energy, wind energy, ethanol mixture  in  petrol,  and  hydrogen  energy  to  manage  foreign  exchange  for  this  purpose,  if  so,  the details thereof;
- (b) whether the mixing of ethanol in petrol has proved beneficial in the form of foreign exchange saving,  improvement  in  environment,  and  timely  payment  to  sugarcane  producers  for  their sugarcane, if so, the details thereof;
- (c) whether the Government's target of mixing 20% ethanol in petrol by the year 2025 has already been met, if so, the details thereof;
- (d) the quantity of ethanol being mixed in petrol at present; and
- (e) the amount of foreign exchange being saved to the country due to this?

## ANSWER

## पेᮝोिलयम और ᮧाकृितक गैस मंᮢालय मᱶ रा᭔  य मंᮢी (᮰ी सुरेश गोपी)

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

- (a) Country's crude-oil import dependence in the current financial year 2025-26 (till Oct'25) is 88.5%. Government have taken various policy decisions and steps to reduce dependency on import of crude oil and boost blending alternatives.

India's  strong  commitment  to  clean  energy  is  being  propelled  by  Ethanol  Blending  Petrol Programme,  Pradhan  Mantri  JI-VAN  scheme,  Compressed  Bio  Gas  (CBG)  ecosystem, National  Hydrogen  Mission,  etc.  As  a  green  fuel,  Ethanol  supports  the  environmental sustainability efforts of the Government. Government have been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme to reduce import dependence on crude  oil  while  saving  foreign  exchange  and  promote  domestic  agriculture  sector.  National Policy on Biofuels - 2018, as amended in 2022, inter-alia, advanced the target of 20% blending of ethanol in petrol to ESY 2025-26 from 2030. India has already achieved blending of more than 19% during the ESY 2024-25.

The Government have notified the Pradhan Mantri JI-VAN (Jaiv Indhan - Vata-varan Anukool fasal awashesh Nivaran) Yojana, to provide financial support for setting up Advanced Biofuels projects in the country using lignocellulosic biomass and other renewable feedstock. Further, towards  decarbonizing  of  the  aviation  sector,  Government  has  approved  1%  Sustainable Aviation Fuel (SAF) indicative blending target in 2027 (initially for International flights).

To  promote  CBG,  Government  have  initiated  various  schemes  like  Sustainable  Alternative Towards Affordable Transportation (SATAT), financial assistance for procurement of Biomass Aggregation  Machinery  (BAM)  and  scheme  for  the  development  of  pipeline  infrastructure (DPI) for transportation of CBG into the City Gas Distribution (CGD) network

Government have promoted the use of LPG and Piped Natural Gas (PNG) for clean domestic cooking  fuel.  To  promote  LPG  as  a  clean  cooking  fuel,  Pradhan  Mantri  Ujjwala  Yojana (PMUY) was launched in May 2016, to provide deposit free LPG connection to adult women from  poor  households.  With  an  aim  to  further  create  environmentally  sustainable  cooking solutions, OMCs are also working on innovative solutions and encouraging start ups to provide new age solutions like Ethanol and Solar cook stoves

Government is implementing the National Green Hydrogen Mission with an objective to make India  a  global  hub  of  production,  usage  and  export  of  green  hydrogen  and  its  derivatives. Strategic  Interventions  for  Green  Hydrogen  Transition  is  a  key  component  of  the  Mission which  provides  financial  incentives  for  production  of green  hydrogen  and  electrolyser manufacturing.

The  share  of  renewable  energy  generation  in  the  country's  total  electricity  generation  has increased from 17.20% during 2014-15 to 22.06% during 2024-25. Further, during the current financial year 2025-26 (upto October, 2025), the share of renewable energy generation in the country's total electricity generation is 28.26%.

During  the  last  five  years  (2020-21  to  2024-25),  a  total  of  86.00  GW  Renewable  Energy Capacity has been installed in the country which includes 70.04 GW Solar Power, 12.29 GW Wind Power, 1.36 GW Bio-Power and 2.31 GW Hydro Power capacity.

As on 31.10.2025, the total non-fossil fuel energy and renewable energy installed capacity in the country is 259.42 GW and 250.64 GW which is 51.37% and 49.63% respectively of the total installed electricity capacity of 505.02 GW.

(b) to (e) The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol  (EBP)  Programme wherein Public Sector Oil Marketing  Companies (OMCs) sell  ethanol  blended  with  petrol.  Under  Ethanol  Blended  Petrol  (EBP)  Programme,  ethanol blending in petrol has increased from 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to more than 1000 crore litres in ESY 2024-25, thereby achieving an average blending of 19.24% ethanol in Petrol during ESY 2024-25. During the month of October, 2025, Ethanol blending of 19.97% has been achieved.

EBP Programme has resulted in expeditious payment to farmers to a tune of over Rs. 1,36,300 crores from Ethanol Supply Year (ESY) 2014-15 up to October 2025, besides savings of more than  Rs.  1,55,000  crore  of  foreign  exchange,  net  CO2  reduction  of  approximately  790  lakh metric tonne and substitution of more than 260 lakh metric tonnes of crude oil.

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