Ethanol is being blended with petrol in the country to reduce dependence on crude oil imports. Amidst the debate on the impact of ethanol on vehicles and its economic benefits and harms, the government has presented an important information in Parliament. The government has informed that public sector oil companies have purchased ethanol worth more than Rs 1.72 lakh crore in the last three years. In a written reply in Parliament, Union Minister of State for Petroleum and Natural Gas Suresh Gopi said that Indian Oil, Bharat Petroleum and Hindustan Petroleum are purchasing fuel grade ethanol from domestic sources. It is being used to blend it in petrol under the Ethanol Blended Petrol Programme.
How much was spent in 3 years?
According to the data given in Parliament, oil companies have spent
2023-24: around 48,757 crores
2024-25: highest 73,996 crores
2025-26 (up to 30 June 2026): 49,577 crores on purchasing ethanol.
That is, a total of more than Rs 1,72,330 crores of ethanol has been purchased in these three years.
From which sources is ethanol being purchased?
According to the government, public sector oil companies are purchasing fuel grade ethanol produced domestically. C-heavy sugarcane, B-heavy sugarcane juice, sugar syrup and surplus rice and corn of the Food Corporation of India are the main sources of ethanol production. This provides a large market for grain-based distilleries along with the sugar industry. As on 16 July 2026, state-owned oil companies have registered 501 ethanol manufacturing units in the country. These units are supplying denatured anhydrous ethanol, which is directly used in the ethanol blended petrol programme.
Oil companies are not only buying ethanol, but are also producing it themselves. Indian Oil produced 712 kilolitres of ethanol in 2025-26 (up to 30 June) against a capacity of 228 kilolitres per day. Bharat Petroleum produced 76 kilolitres per day against a capacity of 200 kilolitres per day. Hindustan Petroleum Biofuels produced 9,373 kilolitres per day against a capacity of 120 kilolitres per day.
