Ethanol Fuel StationImage Credit source: AI generated
To reduce the dependence on crude oil imports in India, the Central Government is now preparing to rapidly promote 100% ethanol i.e. E100 flex fuel. The government is working on a plan to launch 5,000 E100 fuel stations across the country in the next two years. This will increase the use of flex fuel vehicles (FFVs) and can help in saving foreign exchange.
Will start from big cities
According to the roadmap of the Ministry of Petroleum and Natural Gas, 150 E100 fuel stations will be started in Delhi, Mumbai, Pune and Nagpur in the next one month. After this, in the next 6 to 12 months, apart from Delhi-NCR and Maharashtra, this facility will also be extended to Bengaluru, Chennai, Kolkata and Hyderabad. The government aims to start 500 retail outlets in the first phase. After this, this number will be increased to 5,000 in the next 24 months.
Auto companies ready, waiting for launch
Many big automobile manufacturing companies of the country like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra, Hero MotoCorp and TVS Motor Company have prepared prototypes of flex fuel vehicles. However, due to shortage of E100 pumps and lack of clarity regarding fuel price, companies are not launching these vehicles in the market right now.
There may be relief in crude oil import
Flex fuel vehicles run on engines that can use both petrol and high ethanol blends. With this, India can get relief from the huge expenditure on importing crude oil. In the financial year 2025-26, India had imported crude oil worth about Rs 10.9 lakh crore.
Society of India Automobile Manufacturers (SIAM) believes that to make E100 attractive to the common people, its price will have to be kept about 30% less than normal petrol, because its mileage is slightly less.
Increasing demand is the biggest challenge
Indian Oil Corporation (IOC) had earlier made E100 available at about 400 pumps as a pilot project, but its demand remained very low. Experts say that until large numbers of flex fuel vehicles hit the roads, increasing demand for E100 will remain a challenge. At present, 20% ethanol blending is being done in petrol in India, but the government is now preparing to take it to the next level.
