India will begin with the rollout of 50-100 dispensing stations for E85 fuel in the National Capital Region, Mumbai, Pune and Nagpur corridor, Petroleum Minister Hardeep Singh Puri said on Thursday.
Speaking at the the launch of Maruti Suzuki WagonR Flex Fuel in New Delhi, Puri mentioned that E85, a blend containing up to 85% ethanol, has been identified as the mono fuel standard for flex fuel vehicles under BIS specifications, alongside a phased rollout of these vehicles across states. He further noted E85 is cleanest fuel even compared to EVs.
Noting that India's flex fuel has expanded from two wheelers to four wheelers, Puri said that the number of E85 dispensing stations will be increased to 500 by December 2026, and to 5,000 outlets across major cities by end 2027.
According to the Union Minister, if 50% of new two- and four-wheeler sales shift to flexi fuel, the country can unlock 311.8 crore litres of additional ethanol demand. It is expected to generate Rs 12,403 crore additional income for farmers and 66.4 lakh metric tons less carbon emissions.
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Meanwhile, Union Transport and Highways Minister Nitin Gadkari, who was present at the event, said that he expects more players to enter the flex fuel space.
The push for E85 fuel comes at a time when petrol and diesel prices have been hiked across the country as elevated crude prices due to the ongoing conflict has impacted major oil marketing companies. The Union minister noted that after Japan, India saw the lowest price hike in fuel prices.
Speaking on the current impact of rising crude prices on OMCs, Puri said that the losses are still high at around Rs 550 crore per day, which is the price to pay to keep fuel affordable.
Prior to the price hike, the state-run firms were staring at a cumulative loss of Rs 1-1.2 lakh crore in the first quarter of the financial year ending March 2027.
ALSO READ: Gadkari Predicts Drop In Ethanol Prices, Bets On Isobutanol To Replace Diesel
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