Page 45 - Policy Economic Report - August 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

free of cost to all bene?ciaries. PMUY bene?ciaries are not required to make any payments for the LPG
connection or the ?rst re?ll or stove as the cost for these is borne by the Government of India/OMCs.

Targeted Subsidy to Pradhan Mantri Ujjwala Yojana consumers: India imports about 60% of its LPG
requirement. To shield PMUY bene?ciaries from the impact of sharp ?uctuations in international prices
of LPG and to make LPG more a?ordable to PMUY consumers, thereby ensuring sustained usage of LPG
by them, Government started a targeted subsidy of Rs.200/- per 14.2 kg cylinder for up to 12 re?lls per
annum (and proportionately pro-rated for 5 kg connections) to the PMUY consumers in May 2022. In
October 2023, Government increased targeted subsidy to Rs.300 per 14.2 kg cylinder for up to 12 re?lls
per annum (and proportionately pro-rated for 5 kg connections).

Improved LPG consumption by PMUY Households: Average Per Capita Consumption (PCC) of PMUY
consumers which was only about 3 re?lls in 2019-20 and 3. 68 re?lls in 2022-23 has improved to about
4.47 during FY 2024-25.

India’s Ethanol Journey is Unstoppable: Shri Hardeep Singh Puri

Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, said that “India’s ethanol journey is
unstoppable,” while participating in a Fireside Chat Session on the sidelines of the Pioneer Biofuels 360
Summit.

Responding to a question on the success of the Ethanol Blended Petrol (EBP) programme, the Minister
highlighted that ethanol blending gained serious momentum only after 2014, when Prime Minister
Narendra Modi assumed office. In 2014, ethanol blending was merely 1.53%. By 2022, India achieved 10%
blending, five months ahead of schedule. The original target of 20% blending (E20) by 2030 was advanced
to 2025 and has already been achieved in the current Ethanol Supply Year (ESY). This success, the Minister
noted, was made possible through sustained policy reforms such as guaranteed pricing for ethanol,
allowing multiple feedstocks, and rapidly expanding distillation capacity across the country.

Dispelling misinformation and false narratives surrounding ethanol-blended fuel, Shri Puri emphasized
that there has not been a single case of engine failure or breakdown reported since E20 became a base
fuel over the last 10 months. Citing Brazil’s example, he said the country has run on E27 for years without
any issues.

Some lobbies with vested interests are actively attempting to create confusion and derail India’s ethanol
revolution. However, such efforts will not succeed. The E20 transition is already firmly underway, backed
by strong policy support, industry readiness, and public acceptance—and there is no turning back.

Elaborating on the benefits of E20, the Minister said it results into reduction in greenhouse gas emissions,
improves air quality, enhances engine performance, and has already led to over ?1.4 lakh crore in foreign
exchange savings. He pointed out that 2G ethanol refineries in Panipat and Numaligarh are converting
agricultural residues like parali and bamboo into ethanol, providing a win-win solution for clean fuel,
pollution control, and farmer income. He further highlighted the remarkable growth of maize-based
ethanol—from 0% in 2021–22 to 42% this year—calling it a transformational shift.

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