Ethanol-Blended Petrol Discussed in Parliament for Its Reported Benefits

 India’s transition towards ethanol-blended petrol continues to gain policy attention, with senior ministers reiterating its environmental and economic benefits in Parliament. 

Recent statements in the Lok Sabha underline how ethanol blending supports cleaner mobility, enhances farmer earnings and reduces dependence on crude oil imports. 

Extensive testing by government departments and industry stakeholders has also addressed concerns about its compatibility with vehicles.

Ethanol Blending and Its Reported Benefits

Union Road Transport and Highways Minister Nitin Gadkari stated in the Lok Sabha that ethanol-blended petrol has contributed to lower emissions and reduced fuel-related foreign exchange expenditure. 

He said that E20 fuel, which combines petrol with 20% ethanol, has undergone significant testing and no adverse impact has been reported in vehicles using it.

The programme has also provided income support to farmers producing feedstock such as sugarcane and maize.

According to government data shared in Parliament, around ₹40,000 crore has been transferred to farmers through the procurement of ethanol-related raw materials.

Impact on Farmers and Rural Economies

The petroleum ministry reiterated that ethanol blending redirects spending that would otherwise go towards crude oil imports.

Union Petroleum Minister Hardeep Singh Puri stated that the shift has enabled farmers to become contributors to India’s energy supply chain.

He noted that under the ethanol supply programme from ESY 2014–15 to ESY 2024–25 (up to July 2025), public sector oil companies generated foreign exchange savings of more than ₹1.4 lakh crore.

Environmental Considerations

The government highlighted ethanol’s potential to reduce emissions when blended with conventional petrol. The use of E20 fuel is positioned as part of a broader effort to support cleaner mobility.

Ministers also emphasised that the fuel has undergone extensive evaluation for vehicle compatibility, aiming to reassure consumers and address concerns raised in public discussions.

Read More: Best Ethanol Stocks in India for December 2025.

Conclusion

The parliamentary statements reflect the government’s continued emphasis on ethanol-blended petrol as part of India’s energy strategy. While the programme’s economic and environmental contributions were reiterated, its long-term impact will depend on factors such as feedstock availability, production capacity and vehicle adaptation.

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