Ministry of Petroleum and Natural Gas Permits Ethanol Blending In ATF Under New Order

The Centre has allowed the blending of ethanol in aviation turbine fuel (ATF), marking a significant policy shift aimed at advancing India’s Sustainable Aviation Fuel (SAF) programme and reducing dependence on imported crude oil. The decision was formalised through a notification issued by the Ministry of Petroleum and Natural Gas on April 17, which amends the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001.

Under the revised framework, ATF has now been redefined as a “mix of hydrocarbons that can also include synthesised components, as per Indian standards.” This change effectively opens the door for the inclusion of ethanol and other bio-based components in jet fuel, a move that was not previously permitted under existing regulations. At present, Indian airlines operate entirely on conventional jet fuel without any biofuel blending.

The policy shift is expected to support India’s broader clean energy and energy security goals. The government has set a target of achieving 1% SAF blending by 2027, followed by 2% by 2028 and 5% by 2030. These targets are aligned with global efforts led by the International Civil Aviation Organization (ICAO) to reduce carbon emissions from aviation and promote sustainable fuel alternatives.

Also Read: Kharge Alleges Economic Mismanagement as ATF, LPG, and Medicines See Steep Price Hikes

While Sustainable Aviation Fuel is considered environmentally beneficial, it remains significantly more expensive than traditional ATF. However, policymakers believe its adoption could gradually reduce India’s heavy reliance on imported crude oil, which currently accounts for more than 85% of the country’s fuel requirements. This dependence has also exposed India to global price shocks and geopolitical disruptions affecting energy supplies.

Industry experts note that SAF can reduce carbon dioxide emissions by up to 80%, depending on the feedstock used, which includes waste oils, municipal waste, and non-food crops. Aviation bodies such as the International Air Transport Association (IATA) have urged countries to prioritise SAF for aviation use, highlighting that other sectors like automobiles have alternative decarbonisation pathways such as electrification.

India is expected to play a major role in global SAF production potential, alongside countries like the United States, Brazil, and several European nations. According to industry assessments, global availability of suitable biomass feedstock could reach around 105 million tonnes by 2030, strengthening the long-term viability of biofuel-based aviation energy systems.

Also Read: ATF Prices Rise Only 25% From April 1, Government Shields Domestic Airlines