Ethanol-blended petrol saves foreign exchange, benefits farmers: Gadkari tells LS
Petroleum Minister Puri said ethanol blending by public OMCs has saved India over Rs 1.4 lakh crore in foreign exchange
A file image of Nitin Gadkari. (Photo:X)
New Delhi, Dec 11: Ethanol-blended petrol has greatly benefitted farmers and resulted in saving of over Rs 1.40 lakh crore of foreign exchange, Union Minister of Road Transport and Highways Nitin Gadkari told the Lok Sabha, on Thursday.
"Use of E-20 petrol (Ethanol Blended Petrol) is a healthy trend. It is a green transition. It is less polluted and also saves foreign exchange," he said in Lok Sabha during Question Hour.
Amid concerns over the use of ethanol-blended petrol, the Union Minister asserted that after extensive testing, no adverse impact has been found in cars where ethanol mixed petrol is used.
Gadkari said due to the mixing of ethanol in petrol, Rs 40,000 crore has been given to the farmers for the raw materials used, sugarcane, maize etc., in ethanol.
He said vehicle manufacturers are responsible for declaring whether a model is compatible with E20 fuel, and this information must be clearly displayed on the vehicle using a visible sticker.
The minister also clarified that vehicles sold before April 1, 2023, are compatible with E10 fuel, while those sold after this date are made with materials compliant with E20 standards.
He added that safety norms for E20 fuel have been established through BIS specifications and Automotive Industry Standards, and tests have shown no issues with drivability, startability, or the compatibility of metal and plastic components.
Gadkari further informed the House that there is no need to phase out or modify older vehicles that are not E20-compliant.
He said a study by ARAI, IOCL and SIAM has confirmed that normal wear and tear from using ethanol-blended fuel can be managed through routine servicing, and no special retrofitting programme is required.
"EBP Programme has also resulted in savings of approximately 790 lakh metric tonne of net CO2 reduction and substitution of more than 260 lakh metric tonnes of crude oil," the minister stated.
Petroleum Minister Hardeep Singh Puri said following the implementation of the ethanol blending programme, money which was earlier spent on crude oil imports is now going to farmers, who have become "Urjadaatas" apart from being "Annadatas".
He said during the last 11 years, from Ethanol Supply Year (ESY) 2014-15 to ESY 2024-25 up to July 2025, ethanol blending in petrol by public sector Oil Marketing Companies (OMCs) has resulted in savings of more than Rs 1,40,000 crore of foreign exchange.
With inputs from agencies