State-run oil marketing companies (OMCs) have incurred an expenditure of nearly Rs 1.72 lakh crore on ethanol procurement as part of India's ethanol blending programme, the Ministry of Petroleum and Natural Gas informed the Rajya Sabha.
The data shows that OMCs purchased 705.43 crore litres of ethanol worth Rs 49,577 crore during the ongoing Ethanol Supply Year (ESY) 2025-26 up to June.
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The ESY runs from November 1 to October 31 each year.
In the previous supply year, ESY 2024-25, OMCs procured 1,033.31 crore litres of ethanol valued at Rs 73,996 crore, while in ESY 2023-24, they bought 679 crore litres for Rs 48,757 crore.
Combined procurement across these three supply years has crossed Rs 1.72 lakh crore, underscoring the scale of the government's ethanol blending initiative.
As of July 16, 2026, a total of 501 ethanol plants were registered with public sector OMCs to supply ethanol.
Among public sector producers, Indian Oil Corporation Ltd (IOCL) has an ethanol production capacity of 228 KLPD and produced 712 KL till June in ESY 2025-26.
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Bharat Petroleum Corporation Ltd (BPCL) has a capacity of 200 KLPD, with production of 76 KL, while HPCL Biofuels has a capacity of 120 KLPD and produced 9,373 KL during the same period.
These companies manufacture fuel-grade ethanol for blending with petrol.
Among states, Uttar Pradesh recorded the highest sales of ethanol-blended petrol at 124.98 crore litres in ESY 2024-25, followed by Maharashtra at 110.66 crore litres, Tamil Nadu at 92.18 crore litres, Karnataka at 79.24 crore litres, and Gujarat at 56.29 crore litres, reflecting widespread adoption of blended fuel across major markets.
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