Ethanol Blended Petrol (EBP) Program

The Cabinet Committee on Economic Affairs (CCEA), chaired by PM Modi, recently approved revision of ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for Ethanol Supply Year (ESY) 2024-25 (1st November 2024 – 31st October 2025).

  • About EBP program: Launched by the Ministry of Petroleum and Natural Gas (MoPNG) in January 2003.

o Allows OMCs to blend ethanol up to 20% in petrol.

o Promotes alternative and eco-friendly fuels while reducing import dependence.

o Boosts agriculture sector by increasing demand for ethanol.

o Foreign exchange savings: ₹1,13,007 crore (as of 31.12.2024).

o Crude oil substitution: 193 lakh metric tonnes.

  • Growth in Ethanol Blending: Increased from 38 crore litres in ESY 2013-14 to 707 crore litres in ESY 2023-24.

o Achieved 14.60% blending in ESY 2023-24.

o Future Targets & Initiatives: 20% ethanol blending target advanced from 2030 to ESY 2025-26, and planned 18% blending in ESY 2024-25.

o Long Term Off-take Agreements (LTOAs) for Dedicated Ethanol Plants (DEPs) in ethanol-deficient states.

o E-100 & E-20 fuels introduced; flex-fuel vehicles launched.

  • About: Flexible fuel vehicles (FFVs)have an internal combustion engine and are capable of operating on gasoline and any blend of gasoline and ethanol up to 83%.