Government to roll out 100 ethanol fuel stations in major cities: Hardeep Singh Puri

India is preparing a rollout of ethanol fuel infrastructure across major urban centres, with the government starting 50-100 dispensing stations in Delhi-NCR, Pune, Mumbai and Nagpur, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Thursday. The move comes as the country pushes flex-fuel adoption and looks to cut dependence on imported fossil fuels.

Network expansion planned

Puri said the first phase will be followed by a rapid scale-up. He expects the network to reach 500 ethanol stations by the end of 2026 and 5,000 by the end of 2027. The announcement came on the sidelines of the launch of India’s first flex fuel car by Maruti Suzuki.

The minister said wider use of higher ethanol blends could support fuel security and reduce import bills. He pointed out that if Euro VI-standard vehicles are made compliant with E100, the country can further reduce its reliance on imported fossil fuels, which he said is around USD 120 billion.

Support measures under discussion

The government is also working on several measures to make ethanol use more practical. These include pricing support, road tax concessions, E85 testing fuel, special identifiers for flex-fuel vehicles, retail outlet changes, consumer awareness campaigns and the creation of storage and dispensing infrastructure.

"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.

Fuel supply and market stress

Puri also addressed the pressure on oil marketing companies, which continue to absorb losses on retail fuel sales. "They are still quite high... ₹500-550 crore per day loss." he said.

He noted that 60 per cent of India’s LPG and 90 per cent of its crude oil comes through the Strait of Hormuz, but claimed supplies remained uninterrupted despite recent tensions. "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.

Why flex fuel matters

The minister said India’s ethanol blending programme has already moved from 1.5 per cent in 2014 to 20 per cent today. He added that this has delivered foreign exchange savings of ₹1.84 lakh crore through replacement of 302 lakh metric tonnes of crude oil.

He also said if half of all new two-wheelers and four-wheelers were flex-fuel compliant, India could unlock 311.8 crore litres of extra ethanol demand and generate ₹12,403 crore in additional income for farmers. Puri added that India has nearly 37 lakh passenger vehicles, making the segment important for future adoption.

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