Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, has revealed ambitious plans for the expansion of E85 flex fuel availability across India. Speaking at the launch of Maruti Suzuki’s flex-fuel WagonR, Puri stated that approximately 500 petrol pumps in key metropolitan areas will offer the E85 blend by the end of 2026.
Expanding Flex Fuel Infrastructure
The initial phase will see 50-100 dispensing stations in Delhi-NCR, Mumbai, Pune, and Nagpur. These will rapidly expand to 500 outlets by December 2026. Looking further ahead, the minister expressed hopes for a significant increase to 5,000 outlets across major cities by the end of 2027, marking a substantial step in India's energy transition.
E85 fuel is a blend comprising 85% ethanol and 15% petrol, identified as a monofuel standard under BIS specifications for flex-fuel vehicles (FFVs). The government anticipates a phased national rollout of FFVs across various vehicle segments, ensuring the success of this initiative.
Economic Benefits and Energy Security
A crucial factor driving the adoption of flex-fuel vehicles is consumer economics. Puri emphasized that E85 fuel will be priced significantly below conventional petrol, making a strong case for its uptake. Studies suggest that owners of FFVs could achieve cost parity with traditional vehicles relatively quickly if E85 remains more affordable than E20 and regular petrol.
This strategic shift is expected to bolster India's efforts to reduce its heavy reliance on imported crude oil, which currently stands at nearly 89%. By creating additional demand for domestically produced ethanol, the country aims to mitigate vulnerability to global energy price shocks and geopolitical disruptions.
Progress in Ethanol Blending
India has already made considerable progress in ethanol blending, increasing the proportion in petrol from 1.5% in 2014 to 20% today. This has resulted in substantial foreign exchange savings of Rs 1.84 lakh crore through the substitution of 302 lakh metric tonnes of crude oil. The minister highlighted that if 50% of new two-wheelers and four-wheelers become flex-fuel compliant, ethanol demand for fuel could increase by 400 crore litres from the existing 1,100 crore litres, further strengthening the domestic energy sector.