E20 petrol blending saved Rs 1.90 lakh crore in forex, says government; calls it a global practice

The factsheet states that between 2014-15 and May 2026, the ethanol blending initiative helped the country save more than Rs 1.90 lakh crore in foreign exchange by replacing 310 lakh metric tonnes of imported crude oil. During the same period, the programme generated additional income exceeding Rs 1.6 lakh crore for farmers while preventing carbon emissions of more than 930 lakh metric tonnes.

India’s Ethanol Blended Petrol (EBP) Programme has become a cornerstone of the country’s biofuel and energy transition strategy, delivering significant gains in foreign exchange savings, lower crude oil dependence, reduced greenhouse gas emissions and improved income opportunities for farmers, according to a government factsheet released on Sunday.

The factsheet states that between 2014-15 and May 2026, the ethanol blending initiative helped the country save more than Rs 1.90 lakh crore in foreign exchange by replacing 310 lakh metric tonnes of imported crude oil. During the same period, the programme generated additional income exceeding Rs 1.6 lakh crore for farmers while preventing carbon emissions of more than 930 lakh metric tonnes.

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According to the document, India imports nearly 88.5 per cent of the crude oil it consumes, making fuel security a major policy priority. It notes that reliance on imported oil leaves the country vulnerable to fluctuations in global prices and supply disruptions beyond its control. Ethanol derived from domestically produced sugarcane, maize and rice provides an alternative that helps reduce this dependence by utilising locally grown agricultural resources.

The factsheet further notes that ethanol blending has become an established global practice, with leading economies such as the US, Brazil and Japan incorporating the fuel into their energy strategies.

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In the United States, E10 serves as the standard ethanol-blended fuel across the country, while E15 is witnessing rapid expansion with support from the US government. The factsheet notes that millions of vehicles in the country are already equipped as flex fuel models capable of operating on blends up to E85.

Brazil continues to lead the world in ethanol adoption, with E27 currently mandated as the standard petrol blend. According to the factsheet, the country is in the process of increasing this proportion to around 35 per cent. More than 80 per cent of new vehicles sold there are flex fuel models that can run on E27, E30 or pure hydrous ethanol.

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The document also points to Japan’s phased rollout of E10 as part of its efforts to integrate ethanol into the country's fuel mix.

It adds that several other countries, including Canada, Thailand and a number of European nations, have also incorporated ethanol blending into their clean fuel strategies.

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