Union Petroleum and Natural Gas Minister Hardeep Singh Puri
| Photo Credit:
PTI
India is targeting the rollout of around 500 flex-fuel dispensing stations across major cities by the end of 2026 and 5,000 by the end of 2027, as Centre steps up efforts to promote ethanol-based mobility as well as reduce dependence on imported fossil fuels.
Speaking at the launch of Maruti Suzuki’s flex-fuel Wagon R in New Delhi, Petroleum and Natural Gas Minister Hardeep Singh Puri said the Centre plans to begin with 50-100 dispensing stations across key urban centres before rapidly expanding the network over the next 18 months.
“Earlier, there was an attempt to set up a large number of dispensing stations, but the vehicle models were not ready. It was a little like the chicken-and-egg story,” Puri said.
Accordingly, the initial rollout will cover Delhi-NCR, Mumbai, Pune and Nagpur, among other locations.
“I think we are starting with about 50 to 100 dispensing stations in Delhi-NCR and Pune, Mumbai, Nagpur. This 50 to 100 will hopefully go up to 500 towards the end of 2026 and, if this progresses as anticipated, to about 5,000 by December 2027,” he said.
The expansion of the retail network comes at a time when the Centre seeks to create a nationwide ecosystem for flex-fuel vehicles capable of operating on higher ethanol blends, including E85 and E100.
Notably, the announcement follows a day after Hero MotoCorp’s entry into the flex-fuel segment with the launch of flex-fuel variants of its Splendor and HF Deluxe motorcycles.
Puri said the entry of India’s largest two-wheeler manufacturer and largest passenger vehicle maker into the flex-fuel segment marks a significant milestone in the country’s biofuel transition.
“Yesterday we had two very large, high-selling motorcycle brands entering the flex-fuel space. Today we have a passenger vehicle. We are now beginning to see both fuel infrastructure and vehicle availability move together,” he said.
Demand creation
According to the minister, widespread adoption of flex-fuel vehicles could substantially increase ethanol demand while supporting farmer incomes and reducing fuel imports.
India currently imports fossil fuel energy worth nearly $120 billion annually.
“For a country like India, which imports fossil fuel energy worth about $120 billion, imagine the difference this can make. If the fuel going into these vehicles is also produced domestically from biomass, it becomes a win-win situation,” Puri said.
He added that if 50 per cent of new vehicle sales eventually become flex-fuel compliant, it could create demand for nearly 400 crore litres of additional ethanol.
The minister noted that India has already achieved 20 per cent ethanol blending in petrol ahead of schedule and has significantly expanded domestic ethanol production capacity.
Besides, Puri highlighted the role of biofuel programmes in supporting agricultural diversification.
Furthermore, he said that feedstocks ranging from maize and bamboo to agricultural residues and broken rice are increasingly contributing to ethanol production.
“The idea is also to encourage movement away from water-intensive crops towards alternatives such as maize, which require less water and provide additional income opportunities,” he said.
Broader energy transition
The minister said the flex-fuel programme forms part of a broader strategy aimed at improving energy security while supporting cleaner mobility solutions.
He cited discussions with global automobile manufacturers on making existing Euro-VI-compliant vehicles compatible with higher ethanol blends through limited modifications.
In addition, Puri reiterated that E85 and E100 fuels could play a significant role in India’s future mobility mix alongside electric vehicles and other clean energy technologies.
“We are now looking at a new phase where availability, affordability and transition come together,” he said.
Published on June 4, 2026
