Air Travel May Get Cheaper as Government Allows Ethanol Blending in Aviation Fuel

India has allowed ethanol blending in aviation fuel, aiming to reduce costs, cut crude oil imports, and promote clean energy. The move may lower airfares, support farmers, and help achieve net-zero emission targets in the aviation sector.

Post Published By: Karan Sharma

Updated : 22 April 2026, 8:00 PM IST

Government Clears Ethanol Blending in ATF (Image Source: Dynamite News)

New Delhi: The Indian government has approved the blending of ethanol with aviation turbine fuel (ATF). The Ministry of Petroleum and Natural Gas has issued a new notification for this purpose. Now, along with ethanol, synthetic and other man-made hydrocarbons can also be blended into ATF.

The government has amended the old regulations issued under the Essential Commodities Act 1955. Under this, the Aviation Turbine Fuel (Regulation of Marketing) Order 2001 has been updated to include new fuel options.

However, the government has not yet determined what percentage of ethanol must be blended into ATF, nor has any time limit been set.

Why Ethanol Blending is Necessary?

Until now, aircraft have relied entirely on fuel made from conventional crude oil. But blending ethanol and synthetic fuel:

• Fuel costs can be reduced
• Dependence on expensive crude oil imported from abroad will be reduced
• Airline costs will be reduced, which could lead to cheaper airfares
• A major step for the environment
• This decision is important not only for reducing costs but also for environmental protection.
• This will reduce carbon emissions
• It will help achieve India's 'net zero' goal
• It will promote clean and green energy
• Fuel can now be produced according to international standards such as IS 17081, ensuring quality.
• Benefits to farmers and the country

Ethanol is primarily produced from sugarcane, maize, and damaged grains. This helps farmers get better prices for their crops.

According to the government, India has saved more than ₹1.63 lakh crore in foreign exchange through ethanol blending since 2014, and approximately ₹1.43 lakh crore has been paid to farmers.

This decision to blend ethanol in ATF could prove to be a major game changer for India. It could not only make air travel cheaper but also benefit the environment and farmers. In the future, this step will rapidly advance the country towards clean energy.