New Delhi: The Centre on Monday indicated that India may raise the share of ethanol blended with petrol to 21 per cent, slightly above the current 20 per cent level.
Speaking at an inter-ministerial briefing on the West Asia situation, Additional Secretary in the Ministry of Heavy Industries, Hanif Qureshi, said the move is possible under existing standards. Referring to the Bureau of Indian Standards (BIS) norms, he noted that a variation of one percentage point is allowed, making a 21 per cent blend feasible, The Hindu Businessline reported.
He said the government remains focused on expanding the use of biofuels and highlighted that the 20 per cent blending target has already been achieved. According to him, the permitted margin under BIS guidelines allows the blending level to go up to around 21 per cent.
Officials said the ethanol-blended petrol programme has significantly reduced India's dependence on crude oil. The initiative has helped save about 6 million tonnes, or nearly 44 million barrels, of crude oil every year. Over the past decade, it has led to savings of more than 18 million tonnes of crude imports, translating into foreign exchange savings of ₹1.36 lakh crore.
Qureshi also pointed to the growing role of flex-fuel vehicles in cutting oil imports. He said automobile companies have already introduced models that can run on a wide range of ethanol blends, from E20 to E85, without affecting performance. Both two-wheelers and four-wheelers capable of using such fuels are now being developed, and their adoption is expected to increase in the coming years.
For the ethanol supply year 2025-26, which runs from November 2025 to October 2026, the requirement for 20 per cent blending is estimated at 1,350 crore litres. Officials said the additional demand for moving to 21 per cent blending can be met through domestic production, particularly as grain-based ethanol capacity has expanded.
Data shared by officials showed that public sector oil marketing companies had floated tenders for around 1,050 crore litres of ethanol for the current supply year, while offers received totalled 1,759 crore litres, indicating a surplus.
Earlier projections by an inter-ministerial panel led by NITI Aayog had estimated that about 1,016 crore litres of ethanol would be needed to achieve 20 per cent blending in 2025-26, with nearly 466 crore litres expected to come from sources other than sugar.
India has steadily increased ethanol blending in petrol over the years. The 10 per cent target was achieved in June 2022, ahead of schedule. Blending levels rose to 12.06 per cent in 2022-23, 14.60 per cent in 2023-24, and 19.24 per cent in 2024-25. As of March 15, 2026, the level has reached 19.98 per cent for the ongoing supply year.
Meanwhile, the cost of ethanol procurement has been rising. In 2024-25, the average price stood at ₹71.55 per litre, including transport and taxes, which is higher than the cost of petrol produced at refineries.