Ethanol Blended Petrol

  •   Sun, Sep 14 2025
  •   By Jerald Coutinho

September 14, 2025

Introduction

Petrol pumps in India are currently selling petrol blended with 20% ethanol (E20). Ethanol-blended petrol was first introduced in India during 2001–2002, when Oil Marketing Companies (OMCs), following directives from the Ministry of Petroleum and Natural Gas, initiated blending ethanol in small quantities through pilot projects in Nanded (Maharashtra) and Aonla (Uttar Pradesh).

Following the success of these pilot projects, up to 5% ethanol blending was introduced in states like Uttar Pradesh, Karnataka, Maharashtra, and Bihar. Gradually, the blending percentage was increased, and the Government began encouraging sugar industries and grain-based distilleries to augment their ethanol production capacities to meet growing demand.

Today, 20% ethanol-blended petrol (E20) is available across the country.

What is Ethanol?

Ethanol, also known as ethyl alcohol, is the same type of alcohol used in alcoholic beverages. However, the ethanol used in fuel blending is anhydrous, meaning it is free of water. Additionally, it is rendered non-potable by adding a chemical called brucine at the manufacturing stage to prevent misuse.

To counter ethanol’s inherently corrosive properties, a corrosion-inhibiting chemical is added upon receipt at OMC facilities. This protects vehicle parts, storage tanks, and related equipment from damage.

Economics of Blending Ethanol with Petrol

India’s domestic crude oil production is insufficient to meet its petroleum product needs, making the country heavily reliant on crude oil imports, thereby straining foreign exchange reserves.

Encouraged by the successful use of ethanol as fuel in countries like Brazil, India launched an ambitious ethanol blending program aimed at reducing import dependency, supporting the domestic agriculture sector, and generating rural employment.

Sources of Ethanol

Currently, the Government of India permits only domestically produced ethanol for blending with petrol. A major portion of this ethanol is derived from sugarcane, with other sources including grains such as wheat, rice, and maize.

OMCs, in coordination with the Ministry, determine ethanol procurement prices and transportation costs. Based on allocations, ethanol manufacturers dispatch ethanol via tankers to OMC supply locations, where it is stored in dedicated tanks.

During the petrol loading process at these facilities, ethanol is blended into petrol in the prescribed ratio—currently 20%. The ethanol-blended petrol is then supplied to petrol pumps and distributed to consumers.

Advantages of Using Ethanol-Blended Petrol

There are several benefits to ethanol blending:

  • Economic: Reduces the country’s foreign exchange outflow by decreasing crude oil imports.
  • Agricultural: Boosts the rural economy by creating demand for sugarcane and grains, ensuring timely payments to farmers. OMCs settle ethanol procurement payments promptly.
  • Environmental: Ethanol improves the octane rating of fuel and helps reduce carbon emissions, contributing to a cleaner environment.

Conclusion

While some consumers have raised concerns regarding the use of E20 in older vehicles, the Ministry has clarified that 20% ethanol-blended petrol is safe for use, even in older models.

Consumers are encouraged to consult their vehicle manufacturers or contact Oil Company officials if they have any doubts or require further clarification about using ethanol-blended petrol.

 

 
By Jerald Coutinho
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