India Keeps Ethanol Blend at 20% as Govt Plans Cooking‑Fuel Use and New Applications

The Union government announced it will not raise the ethanol content in petrol beyond the current 20 percent level. Minister of State for Petroleum and Natural Gas Suresh Gopi told Parliament that any future increase would require detailed scientific studies and stakeholder consultation, and that the 20 percent target was achieved five years ahead of schedule, saving about ₹1.97 trillion in foreign exchange, cutting crude‑oil imports by roughly 316 lakh tonnes, and generating over ₹1.66 lakh crore for farmers.

The government also assured that the blending programme has not harmed India’s food security or water resources, noting that surplus agricultural produce and maize are used for ethanol production after priority is given to public food‑security schemes.

Separately, the Ministry of Petroleum and Natural Gas is drafting a policy to introduce ethanol as a household cooking fuel. The framework, expected by September, may include subsidies for ethanol stoves and a dedicated supply‑chain, with oil marketing companies exploring “ethanol ATMs” to dispense fuel for cooking. The move aims to utilise the estimated 7 billion litres of surplus ethanol capacity and reduce dependence on imported LPG.

Industry representatives say the E20 rollout has not caused widespread engine damage, with only a marginal 3‑5 percent mileage loss reported for older vehicles. The government continues to promote ethanol use across transport, cooking, aviation and potential export markets.