India Saved Rs 24,300cr By Blending Petrol With Ethanol: Minister
Just as public sector oil marketing companies (OMCs) have introduced a Rs 6.87 per litre incentive for ethanol production from C-heavy molasses, Union Petroleum Minister Hardeep Puri has said that the blending of ethanol into petrol has resulted in a substantial savings of over Rs 24,300 crore in foreign exchange for the supply year 2022-23.
He said that during this period, there has been an estimated net reduction of 108 lakh metric tonnes of carbon dioxide. The number of retail outlets offering E20 fuel has surpassed 9,300 and is anticipated to cover the entire country by 2025.
The introduction of E20 blending in petrol by the central government aims to reduce the country’s oil import costs, enhance energy security, lower carbon emissions, and improve air quality.
With the recent increase in the ethanol incentive, oil companies anticipate a boost in ethanol production from the C molasses route, contributing to the overall availability of ethanol for the blended petrol program. The use of C-molasses, a by-product of sugar factories, for ethanol production is considered an effective strategy to promote a green economy.
India has already phased in 20% blended fuel in April 2023, with widespread availability expected in the coming days. The government has set ambitious targets, aiming for 20% ethanol-blended petrol by 2024-25 and 30% by 2029-30, advancing the E20 fuel target from 2030 to 2025.
The current blending rate has reached 12%, prompting the government to emphasize ethanol and announce mandatory biogas blending in a phased manner.
