VASCO
At petrol pumps across the State, a quiet but decisive shift is underway — one where a sugarcane by-product has steadily worked its way into the nation’s fuel mix.
With the government now pushing for 20% ethanol blending in petrol, what began as a modest experiment has turned into a cornerstone of India’s energy strategy. India’s fuel landscape is now no longer just about crude oil and refineries.
From 2% to 20%: Policy that gathered pace
According to a highly placed source, the ethanol blending programme did not arrive overnight. In its early years, blending hovered inconsistently between 2% and 5%, often struggling with supply gaps and lack of infrastructure. It remained more of an intent than a dependable system.
“The momentum picked up in recent years, where the blending ratio steadily climbed — first to 10%, then 12%, 15%, and now 20%. At one stage, there were discussions to push the blend further to 27%, but public concerns — particularly around vehicle compatibility and efficiency — forced a pause, capping the current threshold at 20%,” explained the source.
Why ethanol? The triple advantage
At the heart of the policy lies a three-pronged objective — cutting crude oil imports, supporting farmers, and reducing emissions.
“India imports a significant chunk of its crude oil requirement. Blending ethanol into petrol directly reduces this dependence. Simultaneously, it creates an additional revenue stream for farmers, particularly sugarcane growers, by diverting excess produce towards ethanol production,” said the source.
“On the environmental front, ethanol-blended fuel burns cleaner than pure petrol, contributing to lower carbon emissions — a key factor as India navigates global climate commitments.”
How blending works inside the tank
The shift is not just policy-driven — it is operationally visible at fuel depots. At Sancoale, where fuel arriving at Mormugao Port is handled, the blending process is both systematic and precise.
A senior source at a fuel tanking facility explained that crude oil is imported, refined, and converted into petrol and diesel. However, with ethanol entering the equation, a portion of pure petrol is effectively substituted.
“Twenty per cent ethanol blending directly translates to a 20% reduction in pure petrol consumption. That means less crude oil import, less foreign exchange going out, and reduced dependency on external sources,” the source said.
Fuel arrives at the port via tanker ships and is transferred through pipelines into storage tanks. At the depot, ethanol — stored separately — is mixed with petrol through dedicated blending systems while loading tankers. These tankers then distribute the blended fuel to petrol pumps across Goa.
“Any facility handling fuel today must have separate storage systems for ethanol and proper blending mechanisms. It’s no longer optional — it’s part of the standard infrastructure,” the source added.
Engines and efficiency: The consumer angle
While the broader gains are evident, the transition has not been without concerns. Ethanol has a lower energy density than petrol, which can result in a marginal dip in mileage.
According to the source, vehicles manufactured before 2023 may experience slight performance variations with higher ethanol blends. However, the automobile industry has already adapted.
“Post-2023, most engines are designed to be E20 compliant. You’ll notice stickers like E20 or even E27 on vehicles, indicating compatibility with higher ethanol blends,” the source said.
The government has also moved towards standardising fuel supply, making ethanol-blended petrol the norm rather than a choice.
Supply chain: From farms to fuel tanks
Unlike crude oil, ethanol has a domestic backbone. It is primarily derived from sugarcane, and increasingly from surplus grains and agricultural produce. Tanking facilities receive ethanol through road transport from sugar industries in regions like Kolhapur, Belgaum, and other parts of Maharashtra and Karnataka.
“The supply is steady. We receive regular ethanol stock from sugar-producing regions. The idea is simple — instead of importing more crude, we use what we produce domestically,” the source said.
There was a time when ethanol was significantly cheaper than petrol. That price gap has narrowed in recent years, but the economic logic remains intact.
“The real advantage is not just cost difference. It is about keeping money within the country. The price paid for ethanol ultimately reaches farmers through sugar industries. That is a major policy push,” the source explained.
