No Plans to Raise Ethanol Blend Beyond 20% for Now, Government Tells Parliament
NEW DELHI – The government has not yet decided to increase ethanol blending in petrol beyond the current 20 per cent level, Minister of State for Petroleum and Natural Gas Suresh Gopi told the Rajya Sabha on Monday. Any future increase would follow further scientific study and consultation with industry stakeholders.
In a written reply, Gopi said: 'So far, no decision has been taken by the government for increasing ethanol blending with petrol beyond 20 per cent.' He added that any move higher would come 'only after detailed scientific and technical studies and consultations with all relevant stakeholders, including automobile manufacturers, oil marketing companies and research institutions.'
India achieved the 20 per cent blending target five years ahead of schedule, with average blending rising from about 1.53 per cent in 2013-14 to 20 per cent in the 2025-26 supply year after more than two decades of phased rollout, the minister noted.
On concerns about engine damage, Gopi stated that the government had received no 'widespread or substantiated complaints' from vehicle manufacturers, automobile associations or consumer groups regarding E20 fuel. He cited service data from a leading four-wheeler maker covering 2.84 crore vehicles in 2025-26, including 1.5 crore non-E20-certified vehicles, which found no damage linked to the fuel. A leading two-wheeler maker reported similar findings. Any mileage loss in older vehicles designed for E10 is 'generally marginal,' at around 3-5 per cent, while E20 offers higher octane and cleaner combustion, he added.
On food security, Gopi said the 20 per cent target has not reduced food crop availability, as only surplus grains (after meeting Public Distribution System, National Food Security Act and buffer-stock requirements) are used for ethanol. Rice diverted for ethanol rose to 39.28 lakh tonnes in 2025-26 (up to June 30) from 31.11 lakh tonnes in 2024-25, while maize diversion stood at 67.87 lakh tonnes in the same period, down from 131.18 lakh tonnes in 2024-25. He said retail sugar and rice inflation had not been affected.
On water use, the minister noted that ethanol plants typically use 3-5 litres of processed water per litre of ethanol produced, and distilleries are required to operate as zero-liquid-discharge units. Feedstocks have been diversified beyond sugarcane to include maize, whose share in ethanol production rose to about 37 per cent in 2025-26 from zero in 2021-22.
State-run oil marketing companies procured 705.43 crore litres of ethanol worth Rs 49,577 crore in 2025-26 (up to June), following 1,033.31 crore litres worth Rs 73,996 crore in 2024-25 and 679.04 crore litres worth Rs 48,757 crore in 2023-24. Gopi said 501 ethanol suppliers are currently registered.
Since 2014-15, the ethanol blending programme has saved over Rs 1.97 lakh crore in foreign exchange, displaced nearly 316 lakh tonnes of crude oil, avoided about 952 lakh tonnes of carbon dioxide emissions, and generated more than Rs 1.66 lakh crore in additional farmer income, the minister stated.
Gopi also said there is no proposal to mandate lower-blend or non-blended petrol at select outlets, as running parallel supply chains would raise costs and dilute the programme's benefits.
