Ethanol blending in petrol reaches highest ever level of 18.2% in December

In the current Ethanol Supply Year (ESY), ethanol blending has reached 16.4 percent, compared to 10.7 percent last year.

India achieved the highest-ever ethanol blending of 18.2 percent in petrol in December, oil ministry data shows, as the country steps up effort to increase the share of alternative fuels to meet its energy demand.

The ethanol blending level in petrol was 11.1 percent in December 2023, data shows. In the current Ethanol Supply Year (ESY), ethanol blending reached 16.4 percent compared to 10.7 percent in the previous year.

Under the Ethanol Blended Petrol (EBP) Programme, the government is targeting 20 percent ethanol blending in petrol by ESY 2024-25, which ends in October 2025.

Ethanol, a biofuel, is mixed with petrol, cutting down on fossil fuel consumption and reducing harmful carbon emissions that contribute to climate change and health issues.

Countries such as Brazil and the US also have mandates in place for ethanol blending in petrol. Brazil, the global leader in the biofuels’ push, has achieved 27 percent ethanol blending in petrol, while in the US, most vehicles run on 10 percent ethanol blended petrol.

In ESY 2023-24, the ethanol blending percentage in petrol surpassed 13 percent, rising from 1.53 percent in 2014.

Over the past decade, the ethanol blending programme has delivered significant benefits, including savings of Rs 1.06 lakh crore in foreign exchange, a reduction in carbon emissions by 544 lakh metric tons and a substitution of 181 lakh metric tons of crude oil.

The programme has had a considerable economic impact, with oil marketing companies (OMCs) disbursing Rs 1.45 lakh crore to distillers and Rs 87,558 crore to farmers.

The practice of blending ethanol with petrol began in 2001 as a pilot.

Crude imports

Imports of crude oil by India, which is the second largest importer of the fuel, increased 3.2 percent till December from the same period of the previous fiscal. The dependency on imports to meet domestic demand climbed to 88.1 percent in the April-December period from 87.5 percent.

India’s domestic crude oil and condensate production declined marginally to 21.6 million metric tonne (MMT) during the period from 22 MMT in the year-ago period.

In December, India’s net import bill for oil and gas came in at $10.4 billion. Crude oil imports accounted for $10.7 billion, LNG $1.2 billion and exports were at $3.6 billion.