From April 1 next year, E-10 petrol with 10% ethanol blending will be available at all petrol pumps in the country. The government has set a target of 20 percent ethanol blending in petrol by 2025, but E-20 will start from April 1, 2023. At present, E-10 petrol is available at 80 percent of the petrol pumps in the country. The government says that this will help reduce sugar export subsidies.
Petroleum Secretary Tarun Kapoor said that in 2025, one thousand crore liters of ethanol would be required for blending 20% ethanol into petrol. Ethanol is also used in many other products. Therefore, the ministry has set a target of 15 billion liters of ethanol production capacity by 2025. So that, there is sufficient availability of ethanol for 20 percent blending in petrol.
Tarun Kapoor said that the average price of ethanol is around Rs 57. In such a situation, fifty thousand crore rupees will come in the domestic market in 2025. According to him, ethanol blending will not make much difference in the import of crude oil, because by that time our oil demand will also increase. But we will be able to stabilize the growth in imports to a large extent. At the same time, pollution will also be less.
He said that in 2025, only surplus sugar, spoiled rice or maize would be used for 20 per cent ethanol blending. Ethanol will not be produced on the basis of food security of the country. He said that farmers and sugar mills are benefitted by making ethanol from surplus sugar. At present, the government gives subsidy to the mills for exporting surplus sugar.