Fuel price rise among world's lowest; 5,000 flex-fuel outlets planned by 2027: Hardeep Singh Puri

Union Minister Petroleum and Natural Gas Minister Hardeep Singh Puri on Thursday said the government plans to expand the country's flex-fuel ecosystem to around 5,000 retail outlets by 2027, as it seeks to accelerate ethanol-based mobility and reduce dependence on imported crude oil.

Speaking at the launch of Maruti Suzuki's WagonR Flex Fuel in New Delhi, Puri also highlighted India's fuel price performance amid global geopolitical disruptions, saying domestic petrol and diesel prices have remained relatively stable compared with most countries.

"In my calculation, India comes after Japan as the country which has the lowest increase in fuel prices amongst all the 193 countries in the world," Puri said.

Flex-fuel infrastructure rollout gathers pace

The minister said the next phase of the government's biofuel strategy will focus on creating a nationwide retail network capable of supplying higher ethanol blends as vehicle manufacturers bring flex-fuel models to market.

"In the beginning, we will have over 50 to 100 dispensing stations in Delhi-NCR, Mumbai, Pune and Ahmedabad. These will expand to 500 by December this year and approximately 5,000 outlets across major cities by the end of next year," he said.

The announcement comes amid growing industry interest in flex-fuel technology. Maruti Suzuki on Thursday unveiled the WagonR Flex Fuel, which can run on 100% ethanol, while Hero MotoCorp recently introduced flex-fuel versions of its Splendor and HF Deluxe motorcycles capable of operating on ethanol blends ranging from E20 to E85.

Ethanol demand could surge with wider vehicle adoption

Puri said India's energy transition strategy is increasingly centred on domestically produced biofuels that can simultaneously improve energy security, lower emissions and support rural incomes.

"Flex Fuel Vehicles offer India a practical solution to reduce crude oil imports, strengthen the rural economy through ethanol demand, and advance low-carbon mobility," he said.

Notably, India achieved 20% ethanol blending in petrol ahead of its original target and has since notified fuel standards for higher ethanol blends such as E22, E25, E27 and E30. The government is now seeking to create additional demand through vehicles capable of running on higher ethanol concentrations.

According to estimates cited by the minister, if half of all new passenger vehicle and two-wheeler sales eventually shift to flex-fuel technology, the move could generate demand for more than 300 crore litres of additional ethanol annually while creating new income opportunities for farmers.

Automakers' entry seen as turning point

Puri said the development of a robust flex-fuel ecosystem had previously been constrained by the limited availability of compatible vehicles despite the existence of fuel infrastructure.

"The balance between fuel availability and vehicle availability is now beginning to fall into place," he said.

Referring to the entry of Maruti Suzuki and Hero MotoCorp into the segment, Puri described the development as a significant milestone for ethanol adoption in the transport sector and a "new chapter" in India's broader energy transition journey.