The central government has launched E85 fuel for flex-fuel vehicles and is currently in discussions with the automobile industry regarding the future expansion of ethanol-based fuels. Petroleum and Natural Gas Minister Hardeep Singh Puri shared this information on Wednesday. Highlighting India’s progress in ethanol blending, the Union Minister stated that the country has achieved its targets ahead of schedule. Flex-fuel vehicles are those capable of running on petrol, pure ethanol, or any blend of the two (ranging from E20 to E85).
He noted that the ethanol blending percentage in petrol rose from 1.5 percent in 2014 to 10 percent in November 2022, while the target of 20 percent blending was achieved ahead of time. Union Minister Puri said, “In 2014, the ethanol content in petrol was 1.5 percent, which increased to 10 percent by November 2022. Our goal was to reach 20 percent by 2030, but we achieved it ahead of schedule in 2024.”
The Minister added, “We are currently engaged in extensive discussions with the industry, including automobile associations like SIAM and other organizations. Meanwhile, we have introduced E85 fuel; however, it is intended solely for E85-compatible flex-fuel vehicles.” Speaking on the government’s broader energy strategy, Puri stated that India is steadily moving towards self-reliance in the energy sector by boosting domestic exploration and production, increasing biofuel blending, and expanding renewable energy capacity. He mentioned that under the ‘Samudra Manthan’ initiative announced by Prime Minister Narendra Modi, ₹90,000 crore has been allocated for drilling new wells and boosting domestic energy production. Addressing concerns regarding the recent hike in fuel prices, the Minister stated that petrol prices in Delhi are lower than they were four years ago, thanks to the Central Government repeatedly reducing excise duty. He noted that the government had cut excise duty on petrol and diesel in November 2021, May 2022, and recently, while several BJP-ruled states had also reduced VAT on fuel.
Regarding the decision to reduce the number of subsidized LPG cylinders provided under the Pradhan Mantri Ujjwala Yojana from nine to four, Puri explained that the move was based on reports of the misuse of subsidized cylinders. According to him, some beneficiaries were using subsidized LPG cylinders for commercial purposes or reselling them, even though they did not require the full quota.
