Oil marketing companies have revised the transportation rates of Ethanol to facilitate large scale Ethanol blending with petrol in states far from ethanol producing states.
State-run oil marketing companies – Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation– are required to blend Ethanol with petrol under the National Policy on Biofuels 2018 Ethanol Blended Program (EBP).
Blending petrol with more of home-grown ethanol can reduce India’s oil import bill by 4 billion US dollars a year.
The central government has fixed a target to blend petrol with ethanol up to 20 percent by 2023. The Ministry of Road Transport and Highways on June 28 issued a draft notification to facilitate manufacture of automobiles designed to run on petrol blended with ethanol to the extent of 12 percent and 15 percent.