Government sets new target of 30% ethanol blending in petrol by 2030

15-Apr-2025 10:37 AM

India has already achieved its target of 20% ethanol blending in petrol by March 2025, well ahead of the initial 2030 deadline. The target was later revised to the 2024–25 ethanol supply year (November 1 to October 31).

In the 2023–24 supply year, the average ethanol blending in petrol stood at 14.6%, a notable rise from 12.06% in 2022–23.

According to ISMA, blending levels last year ranged between 10–14%, while this year it has already reached around 19–20%. Ethanol diversion from the sugar sector touched 3.5 million tonnes, up from 2.1 million tonnes the previous year.

Over the past 10 years, this blending programme has led to ₹1.04 trillion in payments to farmers, while sugar companies have made significant investments in distilleries to meet the growing demand.

For the 2023–24 supply year, Oil Marketing Companies (OMCs) have allocated 9.96 billion litres of ethanol, with approximately 66% coming from grain-based sources.

The programme has also delivered strong environmental and economic benefits:  

- 626 million metric tonnes of carbon emissions avoided  

- ₹1.2 trillion in foreign exchange savings  

- Reduction in crude oil imports by about 20 million tonnes over the past decade

India is now setting its sights on a 30% ethanol blending target by 2030, positioning itself as a global leader in biofuel adoption.