Ethanol Vehicles Can Save India ₹195 Crore With Just 1% Fuel Shift, Says Hardeep Singh Puri


Posted on 4th Jun 2026 12:09 pm by rohit kumar

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri has highlighted the massive economic and environmental benefits India could achieve through increased adoption of ethanol-powered vehicles.

 

Speaking at an event in New Delhi on Wednesday, the minister stated that if just 1% of vehicles sold in India begin operating on ethanol fuel, the country could save nearly ₹195 crore in foreign exchange within a single ethanol supply year.

 

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The government believes ethanol-based mobility can play a crucial role in reducing India’s dependence on imported fossil fuels while promoting cleaner transportation solutions.

 

Ethanol Vehicles Key to India’s Energy Security

 

According to Hardeep Singh Puri, the introduction of flex-fuel vehicles in India marks a major milestone in the country’s clean energy transition.

 

The minister emphasized that reducing reliance on imported crude oil remains one of the government’s top priorities.

 

He said wider adoption of ethanol and biofuels would:

 

Strengthen India’s energy security

Reduce crude oil imports

Lower carbon emissions

Promote cleaner transportation

Support domestic biofuel production

 

Puri added that ethanol-powered mobility would help India move closer toward sustainable and pollution-free transport systems.

 

E85 Fuel Expansion Across India Announced

 

The Union Minister also announced plans to expand the availability of E85 fuel across India.

 

E85 is a specialized fuel blend containing:

 

Up to 85% ethanol

Remaining percentage petrol

 

According to the government, E85 fuel will soon be made available at selected petrol pumps across the country.

 

Officials believe the expansion of ethanol-blended fuel infrastructure will encourage greater adoption of flex-fuel vehicles among Indian consumers.

 

Ethanol Fuel Could Be Cheaper Than Petrol

 

Hardeep Singh Puri stated that E85 fuel is expected to be significantly cheaper than conventional petrol.

 

This price advantage could make ethanol-powered vehicles an attractive option for consumers looking to reduce fuel expenses.

 

The minister explained that increasing ethanol consumption would simultaneously:

 

Reduce India’s fuel import bill

Increase domestic demand for ethanol

Strengthen the agricultural economy

Farmers Expected to Benefit From Biofuel Demand

 

The government believes the growing ethanol sector could create new income opportunities for Indian farmers.

 

As demand for biofuel production rises, crops used for ethanol manufacturing may witness increased market demand.

 

Officials say this could provide an additional revenue stream for the farming community while strengthening India’s domestic biofuel ecosystem.

 

The ethanol push is also being viewed as part of India’s broader strategy to develop self-reliance in the energy sector.

 

Nitin Gadkari Highlights Ethanol-Powered Stove Technology

 

Union Minister for Road Transport and Highways Nitin Gadkari has also been promoting ethanol-based innovations.

 

Last month, Gadkari unveiled an ethanol-powered stove developed using indigenous Indian technology during an event in Nagpur.

 

According to the minister, the stove operates using a combination of water and 7% ethanol to generate heat for cooking purposes.

 

He claimed the technology offers a much cheaper alternative compared to traditional LPG cylinders.

 

India Accelerates Shift Toward Green Energy

 

The Indian government has been actively promoting ethanol blending and alternative fuels as part of its long-term sustainability goals.

 

Experts believe increased adoption of ethanol-based solutions could help India:

 

Reduce dependence on imported oil

Improve environmental sustainability

Cut greenhouse gas emissions

Encourage rural economic growth

 

The push for flex-fuel vehicles and ethanol infrastructure also aligns with India’s broader clean energy and net-zero emission ambitions.

 

Ethanol Sector Expected to Grow Rapidly

 

Industry analysts expect India’s ethanol ecosystem to witness rapid expansion in the coming years due to supportive government policies and rising focus on renewable energy.

 

With growing investment in biofuel infrastructure, flex-fuel vehicle technology, and ethanol distribution networks, the sector is emerging as a key pillar of India’s future energy strategy.

 

The government’s latest announcements indicate that ethanol-based transportation may soon become a major component of India’s automotive and energy landscape.

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