Parliament Question: Mixing of Ethanol in Petrol

LOK SABHA UNSTARRED QUESTION NO - 1964 TO BE ANSWERED ON 11th DECEMBER 2025 MIXING OF ETHANOL IN PETROL †1964. Shri Arun Govil: पेट(cid:332)ोिलयम एवं (cid:366)ाकृ ितक गैस मं(cid:361)ी

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 पे(cid:7069)ोिलयम और (cid:7079)ाकृितक गसै म(cid:7074)ं ालय म (cid:7286) रा(cid:6996)य म(cid:7074)ं ी ((cid:7088)ी सरु ेश 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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