Policy pathways for higher ethanol blending in India: Advancing pollution mitigation, energy security, and agricultural linkages through the ethanol blended petrol program

Vollständiger Abstract

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India’s Ethanol Blended Petrol Program (EBPP) is the largest and one of the most successful biofuel blending programs undertaken by an emerging economy. Since its inception in 2003 and subsequent restructuring through each of the National Policies on Biofuels, the program has evolved into a significant initiative for reducing greenhouse gas emissions associated with transportation fuels. This paper analyzes the program’s development from relatively low levels of blending to achieve 20 percent blended petrol across all oil marketing companies’ outlets by end of December 2025. It uses a four dimensional framework to assess the program’s impact; namely: Energy Security, Environmental Performance, Economic Outcomes and Equity. The results demonstrate the program has generated significant foreign exchange savings of approximately Rs. 1910 billion (USD 23 Billion), crude oil substitution of approximately 310 million Metric Tons, and a cumulative reduction of CO2 emissions of approximately 931 million MT since FY14-15 through to May 2026. In addition, farmers and ethanol suppliers have been paid a total of approximately Rs. 162 billion since FY14-15, demonstrating a tangible rural income transfer mechanism. Additionally, this paper analyzes the recent policy direction announced by the central government on June 2026, where the Ministry of Consumer Affairs, Food & Public Distribution announced that the Government will extend the Excise Duty Waiver for 100 Octane Petrol to be applicable to all formulations up to E30. The paper is a novel attempt to highlight a major sustainable social development policy initiative of the Indian government.