Can Ethanol Replace LPG In Indian Homes? Sugar Industry New Proposal

Can Ethanol Replace LPG In Indian Homes? Sugar Industry New Proposal

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Sakshi Batra
  • Updated Mar 20, 2026 6:10 PM IST

Amid rising crude oil prices and energy security concerns, India’s sugar industry has proposed a major shift - using ethanol as a clean cooking fuel alongside LPG. The industry believes ethanol can replace up to 20% of LPG usage, helping reduce import dependence and potentially saving ₹8,000 crore in subsidies. With India producing nearly 2,000 crore litres of ethanol annually, the move could also utilize surplus sugar production efficiently. The proposal calls for policy support, pilot projects, and integration with existing fuel distribution networks. If implemented, this could mark a significant step toward cleaner energy and self-reliance. However, scalability, safety, and infrastructure readiness will be key factors in determining its success.

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