Ethanol blending saves India Rs 1.90 lakh crore in foreign exchange

India's Ethanol Blended Petrol Programme has saved over Rs 1.90 lakh crore in foreign exchange, generated more than Rs 1.6 lakh crore in additional income for farmers and reduced carbon emissions, reinforcing energy security and supporting the country's clean fuel transition

New Delhi: The Ethanol Blended Petrol (EBP) Programme has emerged as a key pillar of India’s energy transition and biofuel strategy, which has saved the country’s foreign exchange by reducing crude oil imports, lowered greenhouse gas emissions, and strengthened farmers’ incomes through new market opportunities, according to a government factsheet issued on Sunday.

From 2014-15 up to May 2026, the ethanol blending programme has resulted in a saving of over Rs 1.90 lakh crore in foreign exchange by substituting 310 lakh metric tonnes of imported crude oil and has generated additional earnings for farmers of more than Rs 1.6 lakh crore. Besides, it has cut carbon emissions of over 930 lakh metric tonnes, the factsheet states.

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The factsheet highlights that India imports close to 88.5 per cent of the crude oil it consumes, which explains a great deal about why ethanol blending sits so high on the policy agenda. Every barrel of oil bought from abroad exposes the country to price swings and supply shocks that are entirely outside its control. Ethanol produced from Indian sugarcane, maize and rice offers a way to blunt that exposure using resources grown at home, the factsheet stressed.

The factsheet also highlights that ethanol blending is now a globally accepted practice with several major economies including the US, Brazil and Japan implementing the programme.

In the United States, E10 is the standard ethanol blended fuel nationwide, while E15 is expanding rapidly, backed by the US government. Millions of vehicles are already flex fuel capable. These can run on blends as high as E85.

Brazil remains the global leader in ethanol use. It currently mandates E27 as its standard petrol blend. This is being raised further to around 35 per cent. Over 80 per cent of new cars sold are flex fuel vehicles. These run on E27, E30, or pure hydrous ethanol.

Japan has brought ethanol into its fuel mix too. This was done through a phased E10 rollout.

Besides, countries including Canada, Thailand, and several European nations have also adopted ethanol blending as part of their clean fuel strategies, the factsheet added.