NEW DELHI: Petroleum minister Hardeep Singh Puri on Wednesday said flex-fuel vehicles offer India a practical way to reduce crude oil imports. He said if even 1% of annual petrol vehicle sales shift to the technology, it would generate demand for four crore litres of ethanol and save Rs 195 crore in foreign exchange each year. Puri also said this would lead to a reduction of approximately 0.3 lakh metric tonnes in crude oil imports and net reduction of nearly 0.9 lakh metric tonnes of CO2 emissions.
Direct benefits to farmers
“Around Rs 160 crore would flow directly to our farmers instead of going out of the country for oil imports,” Puri said, adding that the impact would be significant as flex-fuel technology scales across India’s two-wheeler ecosystem.
Two-wheeler market leadership
Transport minister Nitin Gadkari said India, as the world’s largest two-wheeler market, is well-positioned to lead the transition towards flex-fuel mobility and it would reduce emissions by 77%.
Flex-fuel vehicles can run on a blend of petrol and ethanol, with ethanol content typically ranging from 20% to 85%. The government has been promoting ethanol blending to reduce dependence on imported crude oil and support the agricultural sector. India currently blends around 10% ethanol with petrol and aims to reach 20% blending by 2025.
The adoption of flex-fuel technology is expected to accelerate with the introduction of flex-fuel engines in two-wheelers and four-wheelers. Automakers are developing vehicles compatible with higher ethanol blends, and the government is working on creating the necessary infrastructure for ethanol distribution.
Experts believe that widespread use of flex-fuel vehicles could significantly reduce India's oil import bill, which currently stands at over $100 billion annually. The move also aligns with India's commitment to reduce carbon emissions and achieve net-zero by 2070.
