Winning Bizness Desk

Mumbai.The Union government has approved ethanol blending in aviation turbine fuel, marking a significant policy shift aimed at reducing pollution and cutting dependence on costly crude oil imports. The Petroleum and Natural Gas Ministry has issued a formal notification amending ATF marketing rules, allowing the integration of ethanol into jet fuel. The move is expected to make air travel cleaner while easing pressure on India’s import bill, especially at a time of global oil volatility.

Updated fuel norms allow ethanol blending now

Under the revised framework, the definition of aviation turbine fuel has been expanded. It will now include not just conventional hydrocarbons but also synthesised components such as ethanol. Officials said the change aligns with evolving Indian standards and reflects a broader global push towards Sustainable Aviation Fuel. The decision comes as several countries accelerate efforts to decarbonise aviation, one of the hardest sectors to transition away from fossil fuels.

Import dependence and forex burden likely reduced

India currently imports nearly 87 percent of its crude oil requirements, leaving the economy exposed to international price shocks. Ongoing tensions in the Middle East often trigger fluctuations in oil prices, directly impacting inflation and fiscal stability. Blending ethanol in aviation fuel is expected to reduce crude consumption and generate savings in foreign exchange.

Key expected benefits include:

• Lower crude oil imports and reduced vulnerability to global price swings
• Savings in foreign exchange reserves over the long term
• Cleaner fuel leading to lower carbon emissions in aviation
• Support for domestic ethanol production and rural economy

Gadkari pushes for ambitious ethanol blending target

Union Minister Nitin Gadkari welcomed the decision, calling it a step towards energy self-reliance. He said India should aim for 100 percent ethanol blending in the future to eliminate dependence on fossil fuels entirely. Gadkari has consistently advocated for alternative fuels, including flex-fuel technologies and green hydrogen, as part of a broader clean energy transition strategy.

In the policy context:

• Push for flex-fuel engines across transport sectors
• Continued emphasis on green hydrogen as future fuel
• Strong policy backing for biofuels like ethanol

CAFE III norms to protect EV and flex fuel

The government’s clean energy push is not limited to aviation. Gadkari clarified that the upcoming Corporate Average Fuel Efficiency, or CAFE III norms, set to be implemented from April 2027, will not adversely impact electric vehicles or flex-fuel cars. These norms are designed to regulate average fuel emissions of vehicles and ensure environmental compliance without discouraging cleaner technologies.

What is Sustainable Aviation Fuel and its role

Sustainable Aviation Fuel is an alternative fuel derived from sources such as used cooking oil, agricultural residue, and waste materials. Ethanol plays a key role in its composition. One of its major advantages is compatibility, as it does not require significant modifications to existing aircraft engines or fuel infrastructure.

At the fag end, its advantages stand out:

• Significant reduction in lifecycle carbon emissions compared to conventional jet fuel
• Use of waste and renewable feedstock, supporting circular economy
• Seamless integration with current aviation systems without major overhaul

The government’s latest move signals a clear intent to align India’s aviation sector with global sustainability trends while strengthening energy security at home.