Ethanol blending level in petrol expected to be fixed at more than 20 percent

27-Feb-2025 08:42 PM

The Indian government is considering increasing the ethanol blending level in petrol to over 20%. Currently, a blend of 19.6% ethanol is already being implemented in petrol, and this is expected to reach 20% by next month. NITI Aayog has formed a working group to explore the possibility of going beyond the 20% mark.

Ethanol in India is produced from various sources like sugarcane juice, B heavy molasses, C heavy molasses, rice, and maize.

Efforts are being made to increase ethanol production, including freeing up sugarcane ingredients for ethanol production and allowing ethanol manufacturers to purchase rice from the Food Corporation of India at a discounted price.

Additionally, the price of ethanol produced from C heavy molasses has been raised to incentivize production.

While the original target was to achieve a 20% ethanol blend by 2026, India has already achieved 19.6% by early 2025, and the blending target may be extended.

The country has the capacity to blend up to 1700 crore liters of ethanol annually, with 1500 crore liters already being utilized.

This move is expected to reduce India's fuel import expenditure (around $150 billion annually), conserve foreign currency, and provide cleaner fuel. Reducing the cost of green hydrogen is also mentioned as an important step for future sustainability.