The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme

The National Policy of Biofuels-2018, as amended in 2022, inter-alia advanced the target of 20% blending of ethanol in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030

Public Sector Oil Marketing Companies (OMCs) have achieved the target of 10% ethanol blending in petrol in June, 2022 i.e., five months ahead of the target during ESY 2021-22.

The ethanol produced from sugar based feedstock has helped sugar factories to reduce its surplus sugar inventory and generate revenue early to clear dues of cane farmers.

EBP programmer has also resulted in approximate savings of more than Rupees 1 crore of foreign exchange, crude oil substitution of 185 lakh metric tonnes.

January 2025

The Union Cabinet has approved revision of ethanol procurement price for Public Sector Oil Marketing Companies for Ethanol Supply Year 2024-25 under Ethanol Blended Petrol Programme.

The decision will not only facilitate the continued policy for the Government in providing price stability & remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment.

Administered ex-mill price of ethanol derived from C Heavy Molasses fixed at Rs 57.97/litres for Ethanol supply year 2024 -2025 under the Ethanol Blended Programme.

To assure sufficient availability of ethanol to meet the increased blending target.

To provide price stability and remunerative prices for ethanol suppliers.