India has achieved 20% ethanol blending in petrol in 2025, five years ahead of its original 2030 target, announced Petroleum Minister Hardeep Singh Puri. Ethanol blending rose from 1.5% in 2014 to 20% in 2025, marking a significant clean energy milestone.
This shift has led to major economic and environmental benefits:
- ₹1.36 lakh crore saved in foreign exchange by reducing crude oil imports
- ₹1.96 lakh crore paid to distilleries, boosting the biofuel sector
- ₹1.18 lakh crore disbursed to farmers, enhancing rural incomes
- 698 lakh tonnes of CO₂ emissions reduced, aiding climate goals
Ethanol is mainly derived from sugarcane and molasses, reinforcing its role in supporting agriculture. The Union Cabinet has also approved a price hike for ethanol for the 2024–25 Ethanol Supply Year, benefiting farmers and distillers further.
