**Policy Summary: Ethanol Blending in Petroleum Products**
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 3051 regarding ethanol blending in petroleum products, answered on August 7, 2025. The Ministry of Petroleum and Natural Gas, represented by the Minister of State Shri Suresh Gopi, outlined the benefits and rationale behind the Ethanol Blended Petrol (EBP) Programme.
The EBP program promotes environmental sustainability by utilizing ethanol as a green fuel, reducing reliance on crude oil imports, conserving foreign exchange, and bolstering the domestic agricultural sector.
Key achievements of the EBP program from Ethanol Supply Year (ESY) 2014-15 up to June 2025 include:
* Payments exceeding Rs. 1,21,000 crore to farmers.
* Foreign exchange savings of over Rs. 1,40,000 crore.
* Net CO2 reduction of approximately 717 lakh metric tonnes.
* Substitution of over 238 lakh metric tonnes of crude oil.
The response clarified that petrol pricing, including ethanol-blended petrol, has been market-determined since June 26, 2010. Oil Marketing Companies (OMCs) make independent decisions on petrol pricing based on international product prices and domestic market conditions. The government does not directly pass on financial benefits accrued from ethanol blending to consumers by reducing petroleum product prices.
Key Entities Referenced
Ethanol Blended Petrol EBP Programme: A government initiative promoting the blending of ethanol in petrol with multiple objectives, including environmental sustainability and reducing import dependence on crude oil.
Ethanol: A green fuel that supports environmental sustainability efforts and reduces import dependence on crude oil.
Minister of PETROLEUM AND NATURAL GAS: The government official responsible for the Ministry of Petroleum and Natural Gas.
SHRI BABU SINGH KUSHWAHA: The Member of Parliament who raised the unstarred question in Lok Sabha.
SHRI SURESH GOPI: The Minister of State in the Ministry of Petroleum and Natural Gas who provided the answer to the Lok Sabha question.
Lok Sabha: The lower house of the Parliament of India, where the question was raised.
Oil Marketing Companies OMCs: Companies that make decisions on the pricing of petrol based on international products prices and domestic market conditions.
ESY 201415: Ethanol Supply Year 2014-2015, the starting point for calculating payments to farmers under the EBP Programme.
LOK SABHA
UNSTARRED QUESTION No. 3051
TO BE ANSWERED ON 07th August, 2025
ETHANOL BLENDING IN PETROLEUM PRODUCTS
†3051. SHRI BABU SINGH KUSHWAHA:
पे(cid:282)ो(cid:871)लयम और (cid:292)ाकृ(cid:467)तक गैस मं(cid:287)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the details of benefits accrued from the blending of ethanol in petroleum products every year;
(b) whether the Government has any plan to pass on the financial benefit accrued from ethanol
blending to the consumers by reducing the prices of petroleum products; and
(c) if so, the details thereof and if not, the reasons therefor?
ANSWER
पे(cid:282)ो(cid:871)लयम और (cid:292)ाकृ(cid:467)तक गैस मं(cid:287)ालय म(cid:581) रा(cid:207)यमं(cid:287)ी
((cid:302)ी सुरेश गोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI SURESH GOPI)
(a) to (c): Government have been promoting blending of ethanol in petrol under the Ethanol
Blended Petrol (EBP) Programme with multiple objectives. As a green fuel, Ethanol supports the
environmental sustainability efforts of the Government. It reduces import dependence on crude oil
while saving foreign exchange and promotes domestic agriculture sector. EBP Programme has
resulted in expeditious payment to farmers of more than Rs.1,21,000 crore from Ethanol Supply
Year (ESY) 2014-15 up to June 2025, besides savings of more than Rs.1,40,000 crore of foreign
exchange, net CO reduction of about 717 lakh metric tonne and substitution of more than 238 lakh
2
metric tonnes of crude oil.
Further, the price of petrol (including ethanol blended petrol) has been market determined
with effect from 26.06.2010. Since then, Oil Marketing Companies (OMCs) take appropriate
decision on pricing of petrol based on international products prices and domestic market conditions.
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