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The Ministry of Petroleum and Natural Gas is preparing a policy to introduce ethanol as a mainstream cooking fuel via dispensing kiosks ('Ethanol ATMs') at fuel retail outlets, targeted for around September 2026.
India's ethanol production capacity has crossed 20 billion litres annually and is projected to reach 24 billion litres by March 2027, with the policy aimed at using surplus output to reduce LPG import dependence.
The first phase may target commercial kitchens, restaurants and street food vendors before wider rollout; ethanol is envisioned as a supplementary fuel, not a full LPG replacement.
Proposed kiosks at fuel retail outlets where consumers buy ethanol in sealed metal/plastic canisters designed to connect to specially engineered ethanol stoves — distinct from LPG cylinders, which store gas under pressure.
Simple Analogy: Similar to buying a refill canister of cooking gas, except the fuel is a liquid biofuel dispensed like at a vending kiosk rather than a pressurised cylinder delivered to the home.
Ethanol is already blended into petrol under India's EBP; this cooking-fuel policy would be a new, separate use for the same surplus ethanol supply chain.
GS Paper III - Energy Security / Infrastructure (Biofuels)
Liquefied Petroleum Gas — a mixture of propane and butane, widely used for cooking in India, largely imported
India's programme to blend ethanol into petrol, reducing crude oil import dependence