New Delhi, March 22 — As tensions escalate in the Middle East and global crude oil prices trend upward, the All India Distillers’ Association (AIDA) has proposed increasing ethanol blending in petrol beyond the current 20% level. The industry body says this step could significantly reduce India’s reliance on imported crude oil.
In a letter addressed to Union Minister for Road Transport and Highways Nitin Gadkari, AIDA Deputy Director General Bharati Balaji stated that the ethanol sector is ready to surpass the existing E20 benchmark already achieved by the country.
Highlighting the ongoing geopolitical instability, she noted that rising oil prices present an opportunity to expand ethanol usage. Increasing the blending ratio beyond 20%, she said, would directly reduce crude imports and help shield the economy from supply disruptions and price volatility.
India reached its E20 target—blending 20% ethanol with petrol—ahead of schedule in 2025. The initiative, introduced under Prime Minister Narendra Modi, aims to lower fuel import costs while cutting carbon emissions.
Building on this progress, AIDA has urged the government to gradually raise the ethanol blending mandate from 20% to 30%.
The association has also put forward additional recommendations, including the rollout of flex-fuel vehicles capable of operating on 100% ethanol, similar to those used in Brazil. It has further suggested promoting ethanol-based cookstoves for both household and commercial use, as well as exploring ethanol blending in diesel to manage fuel costs.
According to AIDA, ethanol-powered cooking solutions could offer a cleaner energy alternative, particularly in semi-urban and rural regions, supporting national goals of expanding clean energy access and reducing indoor air pollution.
India’s ethanol industry currently has a total production capacity of approximately 2,000 crore litres. The sector includes over 380 operational distilleries, with an additional 33 facilities under development.
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