INDIA’S ETHANOL BLENDED PETROL (EBP) PROGRAMME
(ARAI – FIPI – SIAM)
New Delhi, 30th Aug 2025
India’s Ethanol Blending Journey started long time back in 2001. All the stakeholders connected with ethanol blending program like Oil Companies, Auto Industry, Distilleries, Certification Agencies (ARAI, iCAT, etc.) and Regulatory Bodies (BIS, etc.) have worked together and taken this initiative ahead. This initiative of the Govt. of India has led to reduction in carbon emissions, reduction in crude oil import, forex saving, increase in farmer’s income, etc.
The Auto Industry has always worked and made changes to vehicles compatible with all specified blended fuels from time to time in line with the Government’s Ethanol Blended Petrol Programme, which is of national importance.
Despite multiple clarifications regarding the concerns related to 20% ethanol blended petrol (E-20) a need was felt by EBP Program stakeholders led by Testing Agency ARAI, Oil Marketing Companies and OEMs to address these issues again.
India’s E20 adoption is a calibrated, standards-backed journey over a period of more than two decades that reduces import dependency, enhances energy security, lowers carbon emissions (through biogenic content), and supports farmers’ incomes, without compromising on safety or durability of vehicles.
India’s Ethanol Blended Petrol Program was designed after learning from successful global experiences including that of Brazil’s experience with ethanol adoption. The program was rolled out in India after detailed studies confirmed its feasibility under Indian conditions.
The Ethanol Blended Petrol Programme has transformative benefits for the rural economy. The money spent on crude oil imports has now been diverted to our farmers who have become “Urjadaatas”. This has also been successful in addressing the challenge of farmer suicides in the country. At 20% Ethanol blending, it is expected that payment to the farmers in this year alone will be approximately Rs.40,000 crore and forex savings will be around Rs. 43,000 crores. The Ethanol Blended Programme has resulted in CO2 emission reduction of approximately 736 lakh metric tonnes, the equivalent of planting 30 crore trees. In the last 11 years, since the inception of the Ethanol Blended Petrol Program, foreign exchange of Rs. 1.44 Lakh Crore has been saved, and 245 lakh metric tonnes of crude oil has been substituted, providing the energy security which is crucial especially considering the current Geopolitical world order.
With Ethanol’s higher-octane number (~108.5 vs petrol’s 84.4), modern high-compression engines operate more efficiently, improving acceleration particularly valuable in city driving. Its higher heat of vaporization also cools intake temperatures, boosting volumetric efficiency.
India has steadily raised petrol quality from RON 88 to RON 91 under BS-VI norms, and with E20 blending, this has further improved to RON 95, ensuring superior anti-knock properties and performance.
Concerns about drastic mileage loss are misplaced. Real-world vehicle mileage depends far more on driving habits, maintenance practices, age of vehicle, tyre conditions, usage of AC load, etc. As part of the testing conducted on wide range of older vehicles, a marginal drop in fuel economy was observed.
With regard to some social media posts referring to certain advisories supposedly issued by few Petrol Pumps to the consumers on water ingress into fuel tanks of vehicles having ethanol blended petrol, it was clarified that these claims are not backed by any scientific study nor any advisory from OMC’s subsequently these have been removed. Recently All India Petroleum Dealers Association (AIPDA) national body of petroleum dealers all three OMCs across India, shared that dealers have not received any complaint from customers.
Allegations that E20 affects insurance and warranty are baseless. Government and insurers have clarified that insurance remains fully valid.