Reduced Dependence on Oil Imports Through Ethanol Blending

30-Mar-2026 12:29 PM

New Delhi: The Central Government states that the large-scale commencement of ethanol blending in petrol is helping India reduce its dependence on the import of crude mineral oil, thereby resulting in economic savings. Currently, the world is facing a severe oil crisis.

Recently, the Prime Minister remarked that had the domestic production of ethanol—and its blending with petrol—not increased, India would have been compelled to import an additional 45 million barrels, or approximately 7 billion liters, of petroleum from abroad.

This would have entailed a massive financial expenditure. The process of blending ethanol into petrol is ongoing and will continue in the future; it is essential for the future.

In India, ethanol is produced using sugarcane derivatives, maize, rice, and other damaged food grains.

The government also makes rice available to ethanol manufacturers from its own stocks at concessional rates and fixes the price of ethanol produced from various feedstocks.