Ethanol blending with petrol touches 15.9% in June

Ethanol blending with petrol reached a record high of 15.9 percent in June, according to official figures from New Delhi. State-run Oil Marketing Companies (OMCs) blended 63.7 crore litres of ethanol with petrol to achieve this milestone. Government data as of July 1 shows that 14,476 PSU outlets out of a total of 81,963 are now dispensing E20 ethanol-blended MS. The government aims to achieve a 20 percent ethanol blending rate by 2025.

In June, the three state-run oil retailers — Indian Oil Corporation, Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL) — procured 60.9 crore litres of ethanol for blending purposes. From November 2023 to June 2024 (Ethanol Supply Year 2023-24), OMCs procured a total of 401 crore litres of ethanol and blended 414.4 crore litres.

Ethanol blending averaged 12.1 percent in the ethanol supply year 2022-23, 10 percent in 2021-22, and 8.1 percent in 2020-21. A decade ago, the figure stood at just 1.5 percent.

The increased ethanol blending is part of the government’s broader strategy to reduce dependence on imported crude oil, enhance energy security, and address environmental concerns. Ethanol, a renewable biofuel produced primarily from sugarcane and corn, helps reduce greenhouse gas emissions and provides a cleaner alternative to traditional fossil fuels.

In addition to environmental benefits, the ethanol blending programme supports the agricultural sector by providing a stable market for surplus crops. This initiative also aligns with the government’s vision of achieving energy independence and promoting sustainable agricultural practices.

The progress in ethanol blending is significant, considering the logistical and infrastructural challenges involved in transporting and storing ethanol. OMCs have been investing in upgrading infrastructure, including ethanol storage tanks and blending facilities, to ensure the seamless integration of ethanol into the fuel supply chain.

The successful implementation of the ethanol blending programme is also expected to stimulate rural economies by creating job opportunities and enhancing farmers’ income. With the government’s continued support and the concerted efforts of OMCs, India is on track to meet its ambitious target of 20 percent ethanol blending by 2025, contributing to a greener and more sustainable future.