India’s ethanol blending program could reduce the country’s annual crude oil import bill by approximately $4 billion, or roughly ₹38,000 crore, according to the Oil Ministry.
The government is targeting a blend of 20 percent ethanol in petrol (E20), a policy shift designed to curb fossil fuel dependence and improve the trade balance.
The financial impact of the program is substantial for a nation that remains one of the world’s largest crude importers.
By substituting a significant portion of petrol with domestically produced ethanol, India aims to retain capital that would otherwise flow to overseas energy suppliers.
The move also aligns with broader strategic goals to enhance energy security and support agricultural sectors by creating a stable demand outlet for surplus produce.
Execution of the E20 mandate has accelerated in recent months.