New Delhi: Oil Marketing Companies (OMCs) achieved highest-ever ethanol blending in December 2024 at 18.2 percent, government data shows. This is the highest ethanol blending figure recorded till date and is a marked improvement over the 16.1 percent blending recorded during October 2024. According to official data, state-run OMCs procured 84.6 crore litres of ethanol in December 2024 and blended 76.6 crore litres. For the first two months of the new Ethanol Supply Year (ESY) — November and December 2024 — PSU OMCs blended 140.8 crore litres of ethanol and achieved a cumulative blending of 16.4 percent. The ESY in India runs from November to October.
The Modi government is aiming to achieve 20 percent ethanol blending by 2025 under its Ethanol Blending Programme (EBP). According to the Ministry of Petroleum and Natural Gas, “Over the past decade, this initiative has delivered significant benefits, including savings of Rs 1,06,072 crore in foreign exchange, a reduction of CO2 emissions by 544 lakh metric tons, and a substitution of 181 lakh metric tons of crude oil.” The ministry says that the program has had a considerable economic impact, with OMCs disbursing Rs 1,45,930 crore to distillers and Rs 87,558 crore to farmers in the period between 2014-2024.
To achieve the target of 20 percent ethanol blending by 2025, approximately 1,016 crore litres of ethanol will be required. The total demand for ethanol, including other uses, is estimated to be around 1,350 crore litres. To meet this requirement, an ethanol production capacity of about 1,700 crore litres must be established by 2025, assuming the plants operate at 80 percent efficiency. Ethanol blending is an important cornerstone of India’s strategy to achieve greater self-sufficiency in meeting its energy needs and cutting down its reliance on costly oil imports.
According to government data, India’s POL (Petroleum, Oil and Lubricants) product import went up 7.1 percent year-on-year during the April-December period of FY2024-25. The figure for December 2024 increased by 6.3 percent. “Increase in POL products imports during April-December FY 2024-25 were mainly due to increase in imports of liquified petroleum gas (LPG) and petcoke etc,” said Petroleum Planning and Analysis Cell (PPAC), an attached office of the Ministry of Petroleum and Natural Gas.
