Government plans rapid expansion of ethanol fuel stations, targets 5,000 outlets by 2027

New Delhi: Petroleum Minister Hardeep Singh Puri, during Maruti Suzuki’s Wagon R Flex Fuel in Delhi, said the government targets to increase the number of ethanol fuel stations to around 500 by the end of 2026. The longer-term goal is to have approximately 5,000 outlets by 2027.

The move comes as part of India’s broader strategy to reduce dependence on imported fossil fuels and strengthen domestic energy security.

According to Puri, wider adoption of vehicles capable of operating on higher ethanol blends, including E100, might substantially reduce the country’s crude oil import bill, which presently runs into billions of dollars annually. He further pointed out that compared to other countries, the petrol and diesel price increases are “very, very minor”.

He further highlighted that India’s progress in ethanol blending in petrol has risen from just 1.5 per cent in 2014 to 20 per cent today.

This transition has helped reduce crude oil consumption and generated significant foreign exchange savings while supporting domestic agricultural sectors involved in ethanol production. In fact, he noted that India was behind Japan as the country with the lowest increase in fuel prices.

The government is building infrastructure to improve ethanol dispersion

Puri said the government is simultaneously building the infrastructure required to support wider adoption of ethanol.

The initial phase will see around 50-100 ethanol retail outlets set up across key regions, including Delhi-NCR and the Mumbai-Pune-Nagpur belt. The network is targeted to grow to roughly 500 stations by the end of this year, with a much bigger rollout planned across major urban centres through 2027.

Highlighting the broader significance of the initiative, the minister said ethanol-based mobility could play a crucial role in reducing India’s dependence on imported fossil fuels while creating additional revenue streams for the agricultural sector.

This makes the WagonR flex fuel launch a significant point as well.

Puri pointed out that India’s vehicle park currently includes over 30 crore two-wheelers and nearly 37 lakh passenger cars, making flex-fuel technology a potentially transformative solution for cutting fuel imports and lowering emissions at scale.

He also pointed out the recent introduction of the country’s first motorcycle capable of running on pure ethanol as a signal that the flex-fuel ecosystem is gaining pace.

Further, the ongoing geopolitical tensions and concerns surrounding global energy supply chains further strengthen the case for pushing towards the adoption of domestically produced alternative fuels.

Maruti Suzuki Managing Director and CEO Hisashi Takeuchi reiterated the brand’s support for the government’s ethanol and alternative-fuel roadmap. He stated that the WagonR Flex Fuel makes the technology accessible to mainstream car buyers.