India has introduced E85 fuel for compatible flex-fuel vehicles and is consulting industry stakeholders on expanding ethanol-based fuels nationwide.
New Delhi
The government has introduced E85 fuel for compatible flex-fuel vehicles and is actively consulting the automobile industry on expanding the use of higher ethanol blends in the country, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Wednesday.
The minister highlighted India’s rapid progress in ethanol blending and said the country has exceeded key targets ahead of schedule. He noted that ethanol blending in petrol has risen significantly from just 1.5 percent in 2014 to 10 percent by November 2022.
According to Puri, the government had originally targeted achieving 20 per cent ethanol blending by 2030. However, the milestone was reached much earlier, in 2024, reflecting the success of policies aimed at promoting cleaner and more sustainable fuel alternatives.
The minister said discussions are underway with stakeholders across the automobile sector, including the automobile industry body SIAM and other organisations, to explore future expansion of ethanol-based fuel usage. He clarified that E85 fuel has currently been introduced only for vehicles specifically designed and certified to operate on E85 fuel blends.
Highlighting the government’s broader energy strategy, Puri said India is steadily moving toward greater energy self-reliance through increased domestic exploration and production, expanded biofuel adoption and growing renewable energy capacity. He pointed to the Samudra Manthan initiative announced by Prime Minister Narendra Modi, under which Rs 90,000 crore has been allocated for drilling new wells and boosting domestic energy output.
Addressing concerns over fuel prices, the minister said petrol prices in Delhi remain lower than levels recorded four years ago due to multiple excise duty reductions by the Central government. He added that excise duties on petrol and diesel were reduced in November 2021, May 2022 and again recently, while several BJP-ruled states also lowered VAT on fuels.
On the reduction in subsidised LPG cylinder allocations under the Pradhan Mantri Ujjwala Yojana, Puri said the decision was taken after reports of misuse, including diversion of subsidised cylinders for commercial purposes and resale by some beneficiaries.
