Key Highlights
- Government launching 50-100 ethanol fuel stations initially.
- Locations include Delhi-NCR, Mumbai, Pune, and Nagpur.
- Target of 500 ethanol stations by end-2026.
- Ambition to reach 5,000 ethanol fuel stations by end-2027.
- Ethanol blending in petrol increased from 1.5% (2014) to 20% (2026).
- India saved ₹1.84 lakh crore in foreign exchange through ethanol blending.
- Potential to generate 311.8 crore litres of additional ethanol demand.
- Farmers could gain ₹12,403 crore in additional income.
- New regulations proposed for E85, E100, biodiesel, and hydrogen-CNG vehicles.
- OMCs currently losing ₹500-550 crore daily due to high fuel procurement costs.
The Government of India has announced plans to roll out 50-100 ethanol fuel dispensing stations across Delhi-NCR, Mumbai, Pune, and Nagpur as part of its strategy to reduce dependence on imported fossil fuels and promote cleaner transportation.
Speaking during the launch of India’s first flex-fuel car by Maruti Suzuki, Petroleum and Natural Gas Minister Hardeep Singh Puri said the government aims to expand the ethanol station network to 500 outlets by the end of 2026 and further scale it up to 5,000 stations by the end of 2027.
The initiative is expected to support India’s transition toward flex-fuel vehicles capable of running on higher ethanol blends such as E85 and E100, reducing crude oil imports and lowering carbon emissions.
The minister highlighted that India has already increased ethanol blending in petrol from 1.5% in 2014 to 20% in 2026, resulting in foreign exchange savings of approximately ₹1.84 lakh crore through the replacement of imported crude oil.
According to the government, if half of all new two-wheelers and four-wheelers become flex-fuel compliant, the country could generate an additional 311.8 crore litres of ethanol demand and create ₹12,403 crore in additional income for farmers.
The Ministry of Road Transport and Highways has also proposed amendments to vehicle emission regulations to facilitate wider adoption of alternative fuels, including:
- E85 (85% ethanol blend)
- E100 (nearly pure ethanol)
- B100 Biodiesel
- Hydrogen-CNG fuel combinations
Meanwhile, the minister noted that oil marketing companies (OMCs) are currently facing losses of approximately ₹500-550 crore per day due to elevated crude oil, LPG, and gas prices amid geopolitical tensions in West Asia.
