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Ethanol blending (E20) - refinery impact
What it is
The refinery and marketing view of 20% ethanol blending in petrol, achieved in 2025 five years ahead of target. Ethanol is blended at the terminal, so every litre of ethanol displaces a litre of refinery gasoline
Higher blends of E27 and E30 are under consideration for 2028-30, alongside compatible vehicle rollout
Impact on industries
- Cuts the crude import bill and improves energy security, which is the policy objective and a genuine macroeconomic gain
- Directly displaces refinery gasoline volume - the refiner loses the litre and retains the fixed cost, so blending erodes throughput economics
- Blending, storage and terminal logistics costs sit with the marketing company, while the benefit accrues to the exchequer and the ethanol producer
- Gasoline displaced domestically can be exported, so the impact depends on export cracks rather than being a straight revenue loss