India is poised to achieve 20% ethanol blending in petrol by April, ahead of the original 2026 target, and is now exploring options to go beyond this milestone, Petroleum Minister Hardeep S Puri announced on Wednesday. Speaking at the Advantage Assam 2.0 summit in Guwahati, Puri highlighted that the country has already reached 19.6% blending and has formed a NITI Aayog committee to evaluate further increases.
Expanding Ethanol Blending Goals
With a 1,700 crore-litre blending capacity, India currently utilizes 1,500 crore litres in its ethanol program. Increasing this percentage further could significantly reduce the country’s $150 billion fuel import bill, strengthening its energy security.
Puri also stressed the need to lower green hydrogen costs to drive widespread adoption. The price currently stands at $4.5 per kg, and bringing it closer to $2.5 per kg could revolutionize clean energy adoption, he said.
Balancing Energy Transition with Economic Growth
The minister underscored the challenge of transitioning to clean energy while maintaining economic growth. “For an economy like India, growing at 6-7%, fuel demand is essential. We need to balance immediate energy needs with long-term sustainability,” he said.
India’s oil consumption has increased from 5 million barrels per day to 5.5 million, and Puri expects it to reach 6.5-7 million barrels in the short to medium term.
Also read: Energy Transition Must Include Fossil Fuels: Puri
Hydrocarbon Exploration & Net-Zero Targets
Puri reaffirmed that all fossil fuel companies in India will achieve net-zero emissions by 2045, despite developmental challenges. He also projected that domestic hydrocarbon output could hit 5 million tons by 2030, contributing to India’s transition into a $7-10 trillion economy.
In the exploration and production (E&P) sector, India is expanding its Open Acreage Licensing Programme (OALP), aiming to unlock 1 million square kilometers of sedimentary basins for hydrocarbon exploration. So far, 200,000 sq km has been opened under this scheme, with strong investor interest from global energy giants such as Shell, BP, and Chevron.
As India aggressively expands its ethanol blending, hydrogen production, and E&P capabilities, the country is reinforcing its position as a major player in the global energy transition while ensuring energy security and economic resilience.
