The Indian government has announced that its ethanol blending program has saved the country approximately Rs. 1.9 lakh crore in foreign exchange by reducing the need for crude oil imports. The announcement comes as India expands the availability of E20 fuel across the nation.
According to government officials, the Ethanol-Blended Petrol (EBP) program, which mixes ethanol derived from crops like sugarcane and maize with petrol, has significantly cut crude oil imports. Between 2014-15 and 2026, the program saved around Rs. 1.9 lakh crore in foreign exchange. Additionally, it led to a net reduction of approximately 930 lakh tonnes of CO2 emissions. The government also disbursed about Rs. 14,600 crore in subsidies to sugar mills from 2014-15 to 2020-21.
C K Jain, President of the GEMA, stated, “The result showed that E20 is safe for all engines. It was executed and implemented after technical studies, pilot projects, policy discussions, and not in haste.”
India imports most of its crude oil for petrol and diesel production, paying in foreign currency, primarily US dollars. By reducing imports, the country spends fewer dollars, easing pressure on foreign exchange reserves and strengthening the economy against global oil price volatility.
The government’s renewed emphasis on ethanol blending comes amid the rollout of E20 fuel, which has sparked debate over vehicle compatibility, mileage, and maintenance costs. Some experts have called for a slower transition. However, the government aims to highlight the program’s broader benefits: reducing oil imports, supporting farmers, and enhancing energy security.
With India’s continued push for E20, the discussion is expected to persist. For now, officials are focusing on long-term gains rather than short-term concerns.