New Delhi: The government is rolling out 50-100 ethanol fuel stations in Delhi-NCR, Pune, Mumbai and Nagpur, with an aim to reduce imports of fossil fuels, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Thursday.
He expressed hope to expand this network of ethanol fuel stations to 500 by the end of 2026.
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Speaking on the sidelines of the launch of India's first flex fuel car by Maruti Suzuki, Puri said he anticipates that by the end of 2027, India will have 5,000 ethanol fuel stations.
"I think we are starting with about 50 to 100 (ethanol) dispensing stations in Delhi-NCR region, Pune, Mumbai, and Nagpur, etc. This 50-100 (ethanol) dispensing stations will hopefully go up to 500 towards the end of 2026," he said.
The minister said if the Euro VI standard vehicle can be made compliant with E100, it will also help in reducing import of fossil fuels, which is around USD 120 billion.
Puri said the government is also working on supportive measures such as pricing support, road tax concessions, availability of E85 testing fuel, special identifiers for FFVs and retail outlets, consumer awareness initiatives, and development of storage and dispensing infrastructure to increase adoption.
"This is not merely a transition in fuel, but it is the creation of a complete ecosystem for cleaner mobility, stronger energy security, and greater self-reliance," he said.
Responding to a question on losses OMCs are making every day due to buying crude, gas and LPG at higher prices and shielding consumers by selling the three retail fuels at lower prices, he said, "They are still quite high... Rs 500-550 crore per day loss."
The minister said 60 percent of India's LPG and 90 percent of India's crude oil was coming via the Strait of Hormuz.
"In the 93 or 94 days that have elapsed (after the attack of the US and Israel on Iran on February 28), there has not been a single dry out anywhere. There has been no shortage," Puri claimed.
He, however, asserted that there have been individuals who have tried to take advantage of that situation by spreading false news by creating or conspiring to create artificial shortages when none existed.
Puri said India comes next to Japan as a country with the lowest increase in fuel prices.
The minister pointed out that if half the new (two-wheeler and four-wheeler) vehicles which come out are flex fuel-compliant, then India can unlock 311.8 crore litres of additional ethanol demand and Rs 12,403 crore additional income for farmers.
He noted that the country has already raised ethanol blending in petrol from 1.5 percent in 2014 to 20 percent today, resulting in foreign exchange savings of Rs 1.84 lakh crore through the substitution of 302 lakh metric tonnes of crude oil.
The minister said the entry of flex-fuel technology into the passenger vehicle segment is not merely a product launch, but also the beginning of a new chapter in India's energy transition.
Puri noted that India has nearly 37 lakh passenger vehicles representing the aspirations of middle-class India and the future of personal mobility.
Large-scale adoption of flex-fuel technology in this segment can significantly multiply the impact of ethanol-based mobility, he added.
Puri credited the leadership of Prime Minister Narendra Modi for balancing the three key pillars of India's energy strategy -- availability, affordability and sustainability.
On availability, he highlighted that India maintained uninterrupted supplies of crude oil, LPG and natural gas despite global volatility.
"India increased domestic LPG production from 32 TMT per day pre-crisis to nearly 52 TMT per day, while also expanding the transition towards piped natural gas and CNG," the minister said.
On affordability, the minister said India recorded one of the lowest increases in fuel prices globally. He recalled the prime minister's decision to reduce central excise duties on petrol and diesel by Rs 10 per litre to provide relief to consumers.
Talking about sustainability, Puri recalled his earlier experience in Brazil and the USA, where ethanol blending based on sugar and maize had already demonstrated success.
He said India's ethanol blending programme has become one of the most successful energy transition initiatives.
Puri noted that India's ethanol success story was built through a whole-of-government approach and creation of a strong ecosystem involving farmers, ethanol producers, oil marketing companies, vehicle manufacturers, scientists and financial institutions.
India now has the capability to produce ethanol from multiple feedstock sources such as broken grains, agricultural waste, bamboo and seaweed, he said.
The Ministry of Road Transport and Highways has proposed amendments to vehicle emission rules to widen the scope for higher ethanol blends and alternative fuels, paving the way for flex-fuel and pure biofuel vehicles across vehicle categories.
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The draft changes to the Central Motor Vehicles Rules, 1989 aim to provide for wider use of fuels, such as E85 (a blend of 85 percent ethanol with petrol) and E100(which would allow vehicles to run on nearly pure ethanol), as well as B100 biodiesel and hydrogen-CNG combinations.
India has already achieved 20 percent blending of ethanol (produced from biomass like sugarcane, corn or rice) with petrol to create a cleaner-burning fuel, reducing reliance on imported crude oil and cutting carbon emissions.
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