Ethanol-blended petrol has greatly benefitted farmers and resulted in saving of over Rs 1.40 lakh crore of foreign exchange, Lok Sabha was informed on Thursday.
Amid concerns over the use of ethanol-blended petrol, Union Minister of Road Transport and Highways Nitin Gadkari said after extensive testing, no adverse impact has been found in cars where ethanol mixed petrol is used.
"Use of E-20 petrol (Ethanol Blended Petrol) is a healthy trend. It is a green transition. It is less polluted and also saves foreign exchange," he said in Lok Sabha during Question Hour.
1 December 2025
Get the latest issue of Outlook Business
Gadkari said due to the mixing of ethanol in petrol, Rs 40,000 crore has been given to the farmers for the raw materials used -- sugarcane, maize etc. -- in ethanol.
Petroleum Minister Hardeep Singh Puri said following the implementation of the ethanol blending programme, money which was earlier spent on crude oil imports is now going to farmers, who have become "Urjadaatas" apart from being "Annadatas".
He said during the last 11 years -- from Ethanol Supply Year (ESY) 2014-15 to ESY 2024-25 up to July 2025 -- ethanol blending in petrol by public sector Oil Marketing Companies (OMCs) has resulted in savings of more than Rs 1,40,000 crore of foreign exchange.
