India's Ethanol Procurement Surge: A Key Player in Blended Petrol Programme

Public Sector Oil Marketing Companies (OMCs) have significantly increased their expenditure on ethanol procurement to support the Ethanol Blended Petrol Programme. By mid-2026, 501 manufacturing units were registered, contributing to the rise of domestic ethanol production and consumption, with Uttar Pradesh leading in ethanol-blended petrol sales.

Public Sector Oil Marketing Companies (OMCs) in India have reported a significant increase in expenditure related to ethanol procurement, crucial for the Ethanol Blended Petrol (EBP) Programme. The government announced in Parliament that spending reached Rs 48,757 crore in ESY 2023-24, Rs 73,996 crore in ESY 2024-25, and Rs 49,577 crore up to June during ESY 2025-26.

The initiative aims to source ethanol from domestic feedstocks such as sugarcane-based molasses and grain-based alternatives like damaged food grains and surplus rice, according to Minister of State for Petroleum and Natural Gas Suresh Gopi's written reply in the Rajya Sabha. Up to July 16, 2026, 501 ethanol manufacturing units have been registered to supply the necessary fuel-grade ethanol for the programme.

Leading oil corporations including Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) are heavily involved in ethanol production. The reply also revealed a geographic dominance in sales, with Uttar Pradesh topping the list of ethanol-blended petrol takers, followed by Maharashtra, Tamil Nadu, Karnataka, and Gujarat.