India Achieves 20% Ethanol Blending in Petrol Five Years Ahead of 2030 Target
In July 2025, India reached a milestone of 20% ethanol blending in petrol, increasing from 1.5% in 2014. This achievement occurred five years ahead of the 2030 target. Ethanol production surged from 380 million liters in 2014 to 6.61 billion liters by June 2025, saving approximately Rs36 lakh crore in foreign exchange by reducing crude oil imports.
The domestic biofuel industry benefited from Rs1.96 lakh crore paid to distilleries, while Rs1.18 lakh crore was disbursed to farmers, enhancing rural incomes. The shift to ethanol-blended fuel has contributed to a reduction of 69.8 million tonnes in carbon dioxide emissions. Despite the success, concerns persist regarding potential impacts on water resources and vehicle engine damage due to increased ethanol production, amid allegations of conflicts of interest involving government officials.
