Ethanol fuel stations in India to start in key cities, target 500 by end of 2026

India is set to open 50-100 ethanol fuel stations across Delhi-NCR, Pune, Mumbai and Nagpur. Petroleum and Natural Gas Minister Hardeep Singh Puri said the move targets lower fossil fuel imports. Puri spoke while attending the launch of India’s first flex fuel car by Maruti Suzuki. The rollout is part of a wider shift towards higher ethanol use.

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Puri said the first wave is expected to expand quickly over the next two years. "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. Puri also projected 5,000 stations by end-2027.

Ethanol fuel stations and flex fuel vehicles

The minister said a bigger ethanol network needs supporting steps across the market. These include pricing support, road tax concessions, and better storage and dispensing systems. Plans also cover E85 testing fuel, special identifiers for FFVs and retail outlets, and awareness drives. \"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.

Puri said E100-compatible vehicles could cut the fossil fuel import bill. He linked this to Euro VI vehicles becoming compliant with E100. Puri estimated fossil fuel imports at around USD 120 billion. The minister also said flex-fuel in passenger vehicles marks a shift in India’s energy transition, beyond a single product launch.

Puri said India has nearly 37 lakh passenger vehicles linked to middle-class aspirations. Puri added that wider flex-fuel use in this segment could increase ethanol-based mobility impact. Puri also said if half of new two-wheelers and four-wheelers become flex fuel-compliant, India could add 311.8 crore litres of ethanol demand. Puri said this may create Rs 12,403 crore extra income for farmers.

Ethanol blending and fuel import savings

Puri said ethanol blending in petrol rose from 1.5 per cent in 2014 to 20 per cent now. Puri linked this rise to foreign exchange savings of Rs 1.84 lakh crore. Puri said the savings came from replacing 302 lakh metric tonnes of crude oil. India has already achieved 20 per cent blending using biomass sources like sugarcane, corn or rice.

Puri said ethanol can be produced from many domestic feedstocks. These include broken grains, agricultural waste, bamboo and seaweed. Puri said the programme relied on a whole-of-government approach. Puri also listed farmers, ethanol producers, oil marketing companies, vehicle makers, scientists and financial institutions as key stakeholders in the ecosystem.

Ethanol fuel stations amid global supply risks

Puri said oil marketing companies faced losses while keeping retail fuel prices lower. \"They are still quite high... Rs 500-550 crore per day loss,\" Puri said. Puri also said 60 per cent of India’s LPG and 90 per cent of India’s crude oil came via the Strait of Hormuz. Puri said fuel supplies stayed uninterrupted despite global volatility.

Puri referred to tensions after February 28, following the attack of the US and Israel on Iran. \"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. Puri said some people spread false news and tried to create artificial shortages.

Puri said India recorded one of the lowest fuel price rises globally, next to Japan. Puri credited Prime Minister Narendra Modi for balancing availability, affordability and sustainability. Puri said domestic LPG production rose from 32 TMT per day pre-crisis to nearly 52 TMT per day. Puri also cited growth in piped natural gas and CNG use.

Puri recalled ethanol progress seen in Brazil and the USA using sugar and maize. Puri said India’s blending programme had become a successful energy transition initiative. The Ministry of Road Transport and Highways has proposed amendments to vehicle emission rules. The draft changes to the Central Motor Vehicles Rules, 1989 cover E85, E100, B100 biodiesel and hydrogen-CNG combinations across vehicle categories.

With inputs from PTI