Ethanol Blended Petrol Programme (Science and Technology)

Ethanol Blended Petrol Programme (Science and Technology)

Ethanol Blended Petrol Programme (Science and Technology)

Why In News:

As India achieved 20 percent ethanol blending in petrol (E20), five years ahead of the original 2030 target, the Programme emerged as a key pillar of India's energy transition and biofuel strategy.

Source: PIB Analysis, 5 July 2026 - ‘Ethanol Blended Petrol (EBP) Programme’; Press Information Bureau, Ministry of Petroleum and Natural Gas

What is the Ethanol Blended Petrol Programme?

The Ethanol Blended Petrol (EBP) Programme aims to blend ethanol with petrol to promote cleaner and more sustainable transportation.

As of April 2026, all petrol sold across India must contain 20% ethanol (E20) and meet a minimum Research Octane Number (RON) of 95.

India’s ethanol production capacity has skyrocketed from under 2 billion liters in 2014 to nearly 20 billion liters, far exceeding the 11 billion liters required for the E20 mandate.

It is implemented under the National Policy on Biofuels, 2018 and is administered by the Ministry of Petroleum and Natural Gas (MoPNG).

The programme seeks to:

Reduce dependence on imported crude oil.

Lower greenhouse gas (GHG) emissions.

Enhance farmers’ income by creating an alternative market for agricultural produce and agricultural residues.

Infrastructure and Policy Reforms

Long-Term Offtake Agreements (LTOAs): Public Sector Oil Marketing Companies (OMCs) entered into Long-Term Offtake Agreements with Dedicated Ethanol Plants (DEPs).

○ These agreements ensured assured demand, timely payments, and market stability, encouraging investment in ethanol production.

Administered Pricing Mechanism: The government provides assured procurement prices for ethanol supplied under the EBP Programme, promoting private sector participation and investment.

GST Rationalisation: The Goods and Services Tax (GST) on ethanol was reduced from 18% to 5%, lowering production costs and incentivising higher ethanol production and blending.