**Executive Summary**
The Ethanol Blended Petrol (EBP) Programme serves as a cornerstone of India’s energy strategy, successfully increasing ethanol blending from 1.5% in 2013-14 to 20% in 2025-26. By achieving the 20% target five years ahead of schedule, the initiative has saved over ₹1.90 lakh crore in foreign exchange and reduced CO2 emissions by approximately 930 lakh metric tonnes. The programme continues to focus on strengthening energy security, supporting farmer incomes, and fostering a self-reliant transport fuel ecosystem.
**Key Points / Main Content**
**Programme Achievements and Milestones**
* **Blending Targets:** India reached the 20% ethanol blending target in 2025-26, significantly ahead of the original timeline.
* **Capacity Expansion:** Ethanol production capacity grew nearly fivefold from 421 crore litres in 2014 to approximately 2,000 crore litres in 2026.
* **Economic Impact:** The programme substituted over 310 lakh metric tonnes of crude oil and provided additional farmer earnings exceeding ₹1.60 lakh crore.
**Technical Performance and Engine Safety**
* **Engine Integrity:** Extensive testing by SIAM, ARAI, and IOCL confirms no widespread engine failure patterns linked to E20 fuel; warranties remain valid for spec-compliant vehicles.
* **Fuel Quality:** Ethanol is a high-octane fuel (108.5 RON) that raises the effective octane rating of Indian petrol to approximately 95, improving combustion and acceleration.
* **Mileage Impact:** Real-world mileage drops are minimal (e.g., 0.6 km for a car returning 20 km/l) and are often offset by better performance and lower emissions.
**Operational Myths vs. Reality**
* **Resource Usage:** Ethanol production is water-efficient, using 3–5 litres of processed water per litre of ethanol, with modern distilleries employing Zero Liquid Discharge systems.
* **Feedstock Management:** Only surplus rice, as permitted by the DFPD after meeting food security needs, is diverted for ethanol production.
* **Physical Properties:** Distilled fuel ethanol contains no residual sugars and includes insect-repellent denaturants, debunking claims regarding pests or sugar contamination.
**Industry and Global Alignment**
* **Manufacturer Confidence:** Leaders from Toyota, Maruti Suzuki, and Hero MotoCorp have validated E20 as safe and well-tested through extensive service data.
* **Global Standards:** India joins the United States (E10/E15), Brazil (E27 standard), and Japan in adopting ethanol blending as a proven global fuel strategy.
**Impact Analysis**
**Farmers**
**Impact:** Farmers have gained access to new market opportunities for sugarcane, maize, and rice, resulting in over ₹1.60 lakh crore in additional earnings.
**Action Required:** Continue supplying feedstock through sustainable agricultural practices while utilizing surplus grains permitted for industrial diversion.
**Automobile Manufacturers (OEMs)**
**Impact:** Manufacturers must ensure vehicles are calibrated for higher ethanol blends and maintain compliance with BIS and BS-VI emission norms.
**Action Required:** Honor vehicle warranties for E20-compliant use and continue collaborating with testing agencies like ARAI to monitor long-term engine performance.
**Consumers and Vehicle Owners**
**Impact:** Users have access to high-performance, high-octane fuel that reduces greenhouse gas emissions without affecting insurance or warranty validity.
**Action Required:** Maintain standard vehicle servicing, tyre pressure, and efficient driving habits to mitigate the minor calorific differences in blended fuel.
**Government and National Economy**
**Impact:** Significant reduction in crude oil import dependency (currently at 88.5%) and substantial savings in foreign exchange.
**Action Required:** Maintain the EBP mandate despite fluctuating procurement costs to ensure long-term energy security and environmental benefits.
Key Entities Referenced
Ethanol Blended Petrol (EBP) Programme: The primary national initiative aimed at increasing ethanol blending in petrol to enhance energy security, support farmers, and reduce environmental impact.
E20: The specific fuel blend target of 20% ethanol with 80% petrol, serving as a key policy milestone for India's energy strategy and vehicle calibration.
NITI Aayog: The policy think-tank whose reports and roadmaps provide the strategic framework and economic justifications for ethanol procurement and blending mandates.
BS-VI Emission Norms: The mandatory national emission standards that E20 fuel is designed to meet to ensure compliance with environmental regulations.
Department of Food and Public Distribution (DFPD): The regulatory body that determines and permits the diversion of surplus food grains, such as rice, for ethanol production after meeting national food security needs.
PIB Backgrounder
Ethanol Blending in India
Policy Evolution, Key Milestones and Frequently Raised
Concerns
Posted On: 05 JUL 2026 3:33PM by PIB Delhi
Overview of the Ethanol Blended Petrol (EBP) Programme
Ethanol Blended Petrol (EBP) Programme has emerged as a key pillar of India's energy transition and
biofuel strategy. It aims to improve energy security, support farmers, and reduce environmental impacts.
The programme also promotes greater use of domestically produced renewable fuel.
Under the EBP Programme, ethanol blending has increased from less than 1.5 percent in 2013-14 to 20
percent in 2025-26. India achieved the 20 percent blending target five years ahead of schedule. Ethanol
procurement rose from about 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to over 1,200 crore
litres (projected) in 2025-26. Production capacity expanded nearly fivefold from 421 crore litres in 2014
to about 2,000 crore litres in 2026. This expansion has reduced crude oil imports and saved valuable
foreign exchange. It has also lowered greenhouse gas emissions and strengthened farmers' incomes
through new market opportunities.
Strengthening Energy Security through Ethanol Blending
India imports close to 88.5 percent of the crude oil it consumes. That single number explains a great deal
about why ethanol blending sits so high on the policy agenda. Every barrel of oil bought from abroad
exposes the country to price swings and supply shocks that are entirely outside its control. Ethanol
produced from Indian sugarcane, maize and rice offers a way to blunt that exposure using resources grown
at home.
Since the ESY 2014-15 (up to May 2026), the programme has delivered results that go well beyond a
policy target on paper.
₹1.90+ lakh crore 310+ lakh MT* ~930 lakh MT* ₹1.60+ lakh crore
Saved in foreign Additional farmer
exchange since Crude oil substituted CO emissions cut earnings
2
2014-15
*MT – Metric Tonnes
Setting the Record Straight
Here is what the evidence actually shows on the key concerns surrounding ethanol blending, along with
the more colourful myths that have circulated on social media.The Claim The Record
E20 cuts mileage by 30 percent. The 30 percent figure refers only to ethanol's lower calorific
value compared to petrol, not to a drop-in real-world mileage.
Mileage depends on driving habits, tyre pressure, servicing and
AC load far more than fuel type.
E20 damages engines, especially No widespread pattern of engine failure linked to E20 has been
older ones. reported since rollout. E20 was cleared only after extensive
testing by SIAM, ARAI and IOCL together with vehicle makers.
Ethanol is not a high-performance Ethanol is a high-octane fuel, with a research octane number of
fuel and reduces vehicle about 108.5, compared to 84.4 for petrol. E20 raises the effective
performance. octane rating of Indian petrol to around 95, improving
combustion in modern engines. Vehicles calibrated for E20 can
deliver better acceleration, smoother performance, and lower
emissions.
Insurance companies refuse Insurers and OEMs have clarified: E20 has NO impact on
claims for E20 related damage. insurance or warranty validity in India. SIAM has categorically
confirmed warranties will be honoured for vehicles running
spec-compliant E20.
Ethanol blended fuel should be The NITI Aayog report cited for this claim is from 2020-21,
cheaper, and government is when ethanol was indeed cheaper than petrol. Ethanol
pocketing the difference. procurement costs have since risen above refined petrol costs,
yet the mandate continues because of the energy security,
environmental and farm income gains it delivers.
The Government told the Supreme The case was about ethanol procurement contracts -not E20's
Court that E20 is just an merits. The Attorney General's office clarified on 30.06.2026
'experiment'. that the 'experiment' claim is incorrect.
Sugarcane juice is literally poured Viral videos showing raw juice mixed with petrol are
into petrol. misleading. Ethanol is produced through fermentation and
industrial processing that changes its properties entirely, and it
must meet strict fuel quality specifications before blending.
1 litre of ethanol consumes 10,000 An ethanol plant uses only 3-5 litres of processed water per litre
litres of water. of ethanol. Modern distilleries run Zero Liquid Discharge
systems. Attributing the entire agricultural water footprint of
paddy cultivation to ethanol production is incorrect. Only
surplus rice, as determined and permitted by the DFPD after
meeting national food security requirements, is diverted for
ethanol production.The Claim The Record
Ants and bees swarm fuel caps Fuel ethanol is distilled - residual sugars are eliminated. It
because E20 contains sugar. contains insect-repellent denaturants, petrol's odour dominates,
and E20 forms less vapour than regular petrol.
Ethanol's water absorbing nature Keeping water out of any fuel tank, ethanol blended or not, is
will spoil fuel and ruin tanks. basic vehicle design. Modern vehicles are equipped with design
features and safeguards to prevent water entry into fuel tanks.
Industry Voices of Confidence
Confidence in E20 is reinforced by leading automobile manufacturers and energy sector experts, drawing
on extensive testing and real-world service data.
Some of the key observations from industry leaders are as follows:
Vikram Gulati, Country Head and Executive Vice President, Toyota Kirloskar Motor:
Vehicles undergo rigorous, independent certification worldwide. Ethanol is a proven, high-
performance fuel, in use since the early 1900s. Decision to move to E20 was taken only after
rigorous testing on older vehicles
Rahul Bharti, Senior Executive Officer, Corporate Affairs, Maruti Suzuki: E10-designed
vehicles have been tested extensively with E20 fuel. Across 2.84 crore vehicles serviced by Maruti
Suzuki in FY 2025-26, more than 1.5 crore were over three years old and hence not E20-certified.
Still no E20-related damage was found. On mileage, the real impact is small. For a car giving 20 km
per litre, the drop is roughly 0.6 km. Driving habits and maintenance affect mileage far more than
fuel type. Better acceleration and lower pollution offset this small difference.
Ashutosh Varma, Chief Business Officer, Hero MotoCorp: Analysis of extensive service data
found no incidence of higher damage in vehicles running on E20 compared to earlier fuels.
Vartika Shukla, Former Chairman and Managing Director, Engineers India Limited: The
ethanol blending programme was developed through extensive consultation with all stakeholders. It
is supported by scientific evidence, rigorous automotive testing, and global best practices. E20 fuel
meets BIS standards and BS-VI emission norms. It is available uniformly across retail outlets
nationwide.
Across manufacturing and energy sectors, the message from industry leaders is consistent. E20 is safe,
well-tested, and backed by real-world data.
Ethanol Blending Is a Globally Proven Fuel Strategy
India is far from alone in adopting ethanol blending. It is now a globally accepted practice. Several major
economies have built ethanol firmly into their fuel strategy.
United States: E10 is the standard ethanol blended fuel nationwide. E15 is expanding rapidly,
backed by the US government. Millions of vehicles are already flex fuel capable. These can run on
blends as high as E85.
Brazil: Brazil remains the global leader in ethanol use. It currently mandates E27 as its standard
petrol blend. This is being raised further to around 35 percent. Over 80 percent of new cars sold are
flex fuel vehicles. These run on E27, E30, or pure hydrous ethanol.
Japan: Japan has brought ethanol into its fuel mix too. This was done through a phased E10 rollout.Countries including Canada, Thailand, and several European nations have also adopted ethanol blending
as part of their clean fuel strategies.
Powering India's Energy Future
The Ethanol Blended Petrol (EBP) Programme has evolved into a key pillar of India's energy strategy. Its
progress reflects scientific evaluation, phased implementation, and collaboration across government,
industry, and research institutions. The programme has strengthened energy security, reduced emissions,
and created new income opportunities for farmers. It has also reduced crude oil imports and promoted the
use of domestically produced renewable fuel. The EBP Programme will continue contributing to a cleaner,
more resilient, and self-reliant transport fuel ecosystem.
References
Ministry of Petroleum & Natural Gas
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2155558®=3&lang=2
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2277210®=3&lang=1
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2268671®=3&lang=1
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2268889®=20&lang=1
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2281142®=3&lang=1
https://x.com/BPCLimited/status/2072565311484600790?s=20
https://x.com/HardeepSPuri/status/2063080493034488232?s=20
Ministry of Law and Justice
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2279625®=48&lang=2
Click here for pdf file
****
PIB Research
(Release ID: 2281287) Visitor Counter : 2458
Read this release in: Urdu , ही , Gujarati , Tamil