Ethanol Blending Program Has Saved India Rs1.84 Lakh Crore In Foreign Exchange

Flex Fuel Vehicles offer India a practical solution to reduce crude oil imports, strengthen the rural economy through ethanol demand, and advance low-carbon mobility, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said recently. India has one of the world’s largest two-wheeler ecosystems with an active two-wheeler fleet of over 300 million vehicles. The flex-fuel technology has the potential to transform mobility at an unprecedented scale.

The ethanol blending program of Government of India, since ESY 2014-15 has saved India ₹1.84 lakh crore in foreign exchange, resulted in 302 lakh metric tonnes crude oil substitution and 909 lakh metric tonnes reduction in CO₂ emissions. The significant output is that the program has added Rs 1.58 lakh crore earnings to farmers turning our Annadatas to Urjadatas.

The Minister said that even 1% adoption of annual petrol vehicle sales in India during ESY 2026-27 would generate a demand for 4 crore litres of ethanol in which payments of about Rs 266 crore will be made to distilleries and save us Rs 195 crore in foreign exchange. This would lead to reduction of approximately 0.28 lakh metric tonnes of crude oil imports, and a net CO₂ reduction of nearly 0.86 lakh metric tonnes.

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