According to a person familiar with the proposal, India aims to launch 20% ethanol blending with gasoline in some parts of the country starting in April next year, with a statewide rollout planned for 2025/26. India has accelerated efforts to enhance domestic oil production and convert to alternative fuels to reduce its import bill, which has been hit hard by rising oil prices.
For the past three months, India has been blending roughly 10.5 percent ethanol with gasoline, according to the source.
This fiscal year, the government hopes to save up to $500 billion ($6.45 billion) through blending ethanol.
For nearly 85% of its consumption, the world’s third largest oil importer and user relies on foreign supply. India’s gasoline demand is already on the rise, as many prefer to commute in their own cars to avoid the heat.
According to this source, India’s gasoline consumption increased by 14% in the first half of May compared to the same period the previous month, while gasoil demand increased by 2%.
According to a government statement, the Indian cabinet approved revisions to the biofuel policy on Wednesday, moving the aim for 20 percent ethanol blending with gasoline from 2030 to 2025/26. The government has made it possible to use additional feedstock. for the manufacture of biofuels and their export ‘under exceptional circumstances’
Surplus rice and maize, molasses, sugarcane juice, sugar, and damaged food grains are currently permitted in India. Due to rising oil prices, India has accelerated efforts to boost domestic oil production and convert to other fuels in order to reduce its import bill.
For the past three months, India has been blending roughly 10.5 percent ethanol with gasoline, according to the source. This fiscal year, the government wants to save up to Rs 50,000 crore ($6.45 billion) on ethanol blending costs.
About 85% of the demand for the world’s third largest oil importer and client comes from international suppliers. According to this source, India’s gasoline consumption increased by 14% in the first half of May compared to the same period the previous month, while gasoil demand increased by 2%.
The Union Cupboard approved changes to the biofuel programme on Wednesday. According to a government statement, the target of mixing 20% ethanol with gasoline will be delayed from 2030 to 2025-26.
In a ‘exceptional instance,’ the federal government has approved the use of extra feedstock for biofuel manufacturing and export.
India’s gasoline demand is already on the rise, as people prefer to travel in their own vehicles to avoid a heat wave
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