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Indian Government Eyes 5% Ethanol in Diesel to Cut Crude Imports

The Indian government is considering a plan to blend 5% ethanol into diesel (ED-5), as it gets closer to its goal of achieving 20% ethanol blending in petrol within the next two years. A recent meeting at the Prime Minister’s Office, attended by all key ministries, discussed this new proposal.

The aim of blending ethanol with diesel is to reduce environmental impact and cut down on the cost of importing crude oil.

In May, India surpassed 15% ethanol blending in petrol for the first time, thanks to increased production by biofuel companies. Now, the government is working on a plan to start blending ethanol in diesel as well.

An official mentioned that while more ethanol will need to be produced, this move would benefit the environment and reduce the country’s crude oil imports, saving foreign currency.

Earlier tests by the Automotive Research Association of India (ARAI) on BS-III and BS-VI buses showed that vehicles performed well with ethanol-blended diesel, with no major issues and slightly lower fuel consumption than regular diesel. However, more tests, especially on BS-VI vehicles, are still needed. A public sector oil company is expected to soon test the fuel on a heavy-duty vehicle.

Petroleum Minister Hardeep Singh Puri recently informed the Rajya Sabha that ethanol blending with diesel is still in the experimental phase. Initial tests did reveal some challenges, such as deposit formation in fuel tanks.

Most vehicles can currently run on 10% ethanol-blended petrol, with minor adjustments needed for 20% ethanol blends. However, it’s important to note that ethanol has about one-third less energy per unit volume compared to petrol, leading to a 6-7% decrease in fuel efficiency with a 20% ethanol blend.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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