The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme wherein Public Sector Oil Marketing Companies (OMCs) sell ethanol blended with petrol. Under EBP Programme, the blending of ethanol with petrol increased from 188.6 crore litres in Ethanol Supply Year (ESY) 2018-19 to more than 700 crore litres in ESY 2023-24 with corresponding increase in blending percentage from 5% in ESY 2018-19 to approximately 14.6% in ESY 2023-24.    

Since 2019, the number of retail outlets selling ethanol blended petrol has increased steadily. In 2019, ethanol blended petrol was sold from 43168 retail outlets of Public Sector OMCs which has increased to all retail outlets across the country in 2024.

Under EBP Programme, the approximate foreign exchange savings from ESY 2018-19 to ESY 2023-24 is as follows:

Source: Petroleum Planning and Analysis Cell (PPAC)

In order to promote blending of ethanol in petrol, the Government has taken several measures which includes expansion of feedstock for production of ethanol, administered price mechanism for procurement of cane-based ethanol under the EBP Programme, Ethanol Interest Subvention Schemes (EISS) for ethanol production from molasses as well as grains and Long-Term Offtake Agreements (LTOAs) by OMCs with Dedicated Ethanol Plants (DEPs) etc. During the last three years, as on 30.09.2024, EBP programme helped expeditious payment of approx. Rs 57552 Cr to the farmers, approximate savings of more than Rs. 75,000 Cr of foreign exchange, crude oil substitution of nearly 110 lakh metric tonnes and net CO₂ reduction of about 332 lakh metric tonnes.

This information was given by THE MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS SHRI SURESH GOPI, in a written reply in Rajya Sabha today

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MONIKA