The year 2024 ended on a positive note for the Ministry of Petroleum & Natural Gas (MoPNG) with ethanol blending with petrol achieving a rate of 18.2 per cent in December, which is the highest on record.

Around 76.6 crore litres of ethanol was utilised in the blending programme last month. During November-December 2024, the blending volume stood at 140.8 crore litres. State-run Oil Marketing Companies (OMCs) procured 84.6 crore litres ethanol during December and 109.1 crore litres in November-December 2024.

“Ethanol blending in Petrol was 18.2 per cent during December 2024 and cumulative ethanol blending during November 2024- December 2024 was 16.4 per cent. Ethanol Blending percentage achieved during December is the highest till date,” MoPNG said.

The Ministry has been promoting ethanol blending in petrol under the Ethanol Blended Petrol (EBP) programme. Under the National Policy on Biofuels, it aims to achieve the target of 20 per cent blending in Ethanol Supply Year (ESY) 2025-26.

India’s ethanol production capacity is around 1,683 crore litres, which is more than sufficient to meet the 20 per cent blending mandate till October 2026. To achieve a blending for 20 per cent ethanol with petrol in the ESY 2024-25, around 990 crore litres of ethanol will be required.

According to the International Energy Agency (IEA), ethanol demand in India tripled between 2017 and 2021. In 2017 blending stood at 2 per cent, but by the summer of 2021 it touched 8 per cent.

Public sector OMCs achieved the target of 10 per cent ethanol blending in petrol in June, 2022, which was five months ahead of the target during ESY 2021-22. Blending of ethanol further increased to 12.06 per cent in ESY 2022-23 and around 14.6 per ent during ESY 2023-24. 

During the last ten years, the EBP programme helped in payment of around ₹92,409 crore to farmers as of September 2024. 

During the same period, EBP programme also resulted in approximate savings of more than ₹1,08,655 crore of foreign exchange, crude oil substitution of 185 lakh tonnes and net CO2 reduction of about 557 lakh tonnes. 

It is anticipated that 20 per cent ethanol blending in petrol is likely to result in payment of more than ₹35,000 crore annually to farmers.