The government has introduced E85 fuel for E85-compatible flex-fuel vehicles and is holding extensive consultations with the automobile industry on the future expansion of ethanol-based fuels, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Wednesday.
Speaking exclusively to IANS, Puri highlighted India's progress in ethanol blending, stating that the country has surpassed its targets well ahead of schedule. He said ethanol blending in petrol has increased from 1.5 per cent in 2014 to 10 per cent in November 2022, while the target of achieving 20 per cent blending was accomplished ahead of time.
"From 2014 until now, we have increased ethanol blending from 1.5 per cent to 10 per cent, which was achieved in November 2022. Our target was to achieve 20 per cent blending by 2030, but we completed it in 2024 itself," Puri said. "At present, we are having very widespread discussions with the industry, including our automobile association, SIAM, and other organisations.
Meanwhile, we have introduced E85 fuel. However, E85 has been introduced only for E85-compatible flex-fuel vehicles," the minister added. On the government's broader energy strategy, Puri said India is steadily moving towards greater self-reliance in the energy sector through increased domestic exploration and production, higher biofuel blending and expanding renewable energy capacity.
He added that under the Samudra Manthan initiative announced by Prime Minister Narendra Modi, Rs 90,000 crore has been earmarked for drilling new wells and boosting domestic energy production. Responding to concerns over recent fuel price hikes, the minister said petrol prices in Delhi remain lower than they were four years ago due to multiple reductions in excise duty by the Centre.
He noted that the government had cut excise duties on petrol and diesel in November 2021, May 2022 and again recently, while several BJP-ruled states had also reduced value-added tax (VAT) on fuels. On the reduction in the number of subsidised LPG cylinders available under the Pradhan Mantri Ujjwala Yojana from nine to four, Puri said the decision was based on reports of misuse of subsidised cylinders. According to him, some beneficiaries were allegedly diverting subsidised LPG cylinders for commercial use or reselling them, despite not requiring the full quota.