India Eyes Ethanol as Cooking Fuel, Plans Subsidy to Reduce LPG Dependence
A new policy could bring ethanol-powered cooking stoves into homes, offering a cleaner alternative to LPG and lowering India's fuel import bill.
India is preparing to introduce ethanol as an alternative cooking fuel in a major move aimed at reducing the country's dependence on Liquefied Petroleum Gas (LPG). The Ministry of Petroleum and Natural Gas is drafting a policy that could bring ethanol-powered cooking stoves into Indian households, with the possibility of government subsidies to encourage adoption.
According to reports, the proposed policy is expected to be finalized by September 2026. Industry associations representing fuel suppliers are already in discussions with the government, while oil marketing companies are also participating in consultations related to the initiative.
The policy is designed to promote ethanol alongside LPG as a cleaner cooking fuel. Officials believe the move could help reduce India's LPG imports, lower the national fuel import bill, and strengthen the country's transition toward cleaner energy sources.
The government is also considering a subsidy scheme to make ethanol-based cooking more affordable for consumers. Earlier this year, pilot testing of ethanol-powered cooking stoves was initiated to evaluate their feasibility for domestic use.
India's growing ethanol production capacity has made the proposal more practical. According to a CareEdge Ratings report released in May, the country's annual ethanol production capacity has already crossed 20 billion litres, with an additional 4 billion litres expected during the current financial year.
Of the total production, around 11 billion litres are consumed annually under the country's E20 petrol blending programme. Another 3 to 3.5 billion litres are used by the alcohol, pharmaceutical, and chemical industries, leaving nearly 7 billion litres of production capacity available for other applications, including cooking fuel.
The government is also exploring export opportunities for surplus ethanol to neighbouring countries such as Nepal, Bangladesh, and Indonesia, where ethanol blending targets exist but domestic production remains limited.
Oil marketing companies have reportedly been conducting research on ethanol-powered cooking technologies and are evaluating potential partnerships and technology acquisitions to support the initiative.
If implemented, the policy could mark a significant shift in India's clean energy strategy by expanding the use of ethanol beyond transportation and into everyday household cooking.
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