AIDA Calls for Faster Ethanol Expansion in Fuel Mix

The All India Distillers’ Association (AIDA) has urged the government to accelerate policy measures aimed at expanding ethanol’s role in India’s fuel ecosystem. In a letter to Union Minister Nitin Gadkari, the industry body recommended increasing ethanol blending beyond the current 20 percent level and speeding up the adoption of flex-fuel vehicles. The proposal comes amid rising global oil price volatility and geopolitical tensions affecting energy markets.

Push to Increase Ethanol Blending Beyond E20 Target

AIDA highlighted that India has already achieved its E20 ethanol blending target ahead of schedule, supported by strong policy backing and coordinated industry efforts. Building on this progress, the association has proposed raising blending levels further to reduce dependence on crude oil imports.

Targeting 30 Percent Ethanol Blending

The industry body suggested increasing ethanol blending in petrol from 20 percent to 30 percent, stating that this move could significantly lower India’s crude import bill and improve energy security.

Reducing Dependence on Imported Crude Oil

AIDA warned that continued geopolitical instability, especially in the Middle East, could push global oil prices higher, making domestic energy diversification increasingly important.

Flex Fuel Vehicles and Broader Ethanol Adoption

AIDA strongly advocated for the rapid rollout of flex-fuel vehicles in India, similar to models already widely adopted in countries like Brazil. These vehicles can run on high ethanol blends or even 100 percent ethanol, creating a stable demand ecosystem.

Support for 100 Percent Ethanol Vehicles

The association recommended introducing vehicles capable of running fully on ethanol, which would help scale up consumption and support higher blending targets in the long term.

Ensuring Long-Term Demand Stability

According to AIDA, expanding flex-fuel infrastructure is essential to provide consistent demand for ethanol producers and ensure viability of higher blending levels in the future.

Expanding Ethanol Use Beyond Transportation Fuel

The association also proposed widening ethanol applications beyond automotive fuel, suggesting its use in household and commercial energy solutions. This diversification, it said, could strengthen energy access while supporting cleaner alternatives.

Ethanol-Based Cooking Solutions

AIDA suggested introducing ethanol burners for domestic and commercial cooking, especially in semi-urban and rural regions, as a cleaner alternative to conventional fuels.

Potential Use in Diesel Blending

The industry body also recommended exploring ethanol blending in diesel as a way to further reduce fuel costs and expand the overall consumption base of ethanol.

Conclusion

AIDA’s recommendations highlight a broader push to position ethanol as a strategic component of India’s energy transition. By expanding blending targets, promoting flex-fuel vehicles, and diversifying ethanol applications, the industry body believes India can strengthen energy security while reducing dependence on imported crude oil.