Ethanol blending with petrol reaches 19.93% in July, surpassing 20% target for ESY 2025-26.

Ethanol blending with petrol in India has reached 19.93% in July, surpassing the 20% target set for 2030. The government has taken measures to ensure feedstock availability and boost production, including the allocation of surplus rice and sugar for ethanol production. The target has been advanced to ESY 2025-26 due to rapid expansion.

India has achieved a significant milestone in its ethanol blending with petrol, surpassing the 20% target set for 2030. As of July, the ethanol blending has reached 19.93%, well ahead of the original schedule [1].

The government has implemented several measures to ensure the availability of feedstock and boost ethanol production. One notable strategy is the allocation of surplus rice and sugar for ethanol production. Additionally, the target has been advanced to the Ethanol Supply Year (ESY) 2025-26 due to the rapid expansion of ethanol blending [1].

The Indian Oil Corporation (IOC) has confirmed that both XP95 premium fuel and normal Motor Spirit in Kolkata contain 20% ethanol by volume. This confirms the nationwide rollout of 20% ethanol blending in petrol, a nearly thirteenfold increase from 2014 [2].

However, the transition to higher ethanol blends has not been without challenges. Vehicle owners, especially those driving older models, have expressed concerns about reduced engine performance and potential damage to their vehicles. The lack of choice at petrol pumps and the absence of clear disclosures about the ethanol content in fuel have further exacerbated these concerns [1].

Moreover, the pricing of E20 fuel has become a contentious issue. While the cost of producing E20 fuel is around ₹61 per litre, including GST, the retail prices often remain the same or even higher in some states. This is due to excise duties, VAT, and the subsidy structure, which prevent cost benefits from reaching consumers [2].

A recent report by Aemetis, a company involved in ethanol production, highlights the revenue growth and segment performance during the second quarter of 2025. Aemetis reported $52.2 million in revenue, driven primarily by biodiesel and dairy RNG segments. Ethanol production was optimized for margin maximization, leading to a 13.8 million gallons production rate during Q2 [3].

In conclusion, India's ethanol blending in petrol has achieved a significant milestone, surpassing the 20% target set for 2030. While the government has taken measures to ensure feedstock availability and boost production, the transition has faced challenges, particularly around vehicle compatibility and pricing. Further measures are needed to address these concerns and ensure a smooth transition to higher ethanol blends.

References:
[1] https://indianexpress.com/article/business/e20-fuel-blend-backlash-brazil-template-10180458/
[2] https://www.financialexpress.com/business/industry-indian-oil-corporation-confirms-adding-20-ethanol-blending-in-premium-xp95-and-motor-spirit-variants-3942405/
[3] https://www.ainvest.com/news/aemetis-q2-2025-unraveling-contradictions-45z-tax-credits-india-ipo-lcfs-strategies-2508/