Industry Urges Flex-Fuel Vehicle Rollout to Cut Oil Imports Amid Price Surge

The request from the industry came in the backdrop of soaring crude oil prices in the global markets following tensions getting escalated in the Middle East recently, which is hampering the smooth supplies of the fossil fuel across the globe.

"Our suggestion to the government is commercialize the flex vehicles. Flex vehicle is not a rocket science today. Brazil is running flex vehicle for many, many years," Singh said on the sidelines of the AIDA Annual Distillers' Conclave 2026. "Many companies in India are ready with the prototype of flex vehicles. They will need some support from the government in terms of policy and maybe some tax relief."

He said both two-wheelers and four-wheelers can be deployed under a flex-fuel system, reducing dependence on petrol. "If you bring the flex vehicle in the country, two wheelers and four wheelers both, imagine that many vehicles will run on ethanol. No petrol required. So, problem solved," he said.

Singh said the proposal is part of a broader industry push to expand ethanol use and reduce reliance on costly crude imports. He noted that high crude prices and a depreciating rupee are putting pressure on the import bill, and ethanol can help ease that burden.

The industry has also urged increasing ethanol blending in petrol from 20% to 30%. "We can substitute 10% more petrol with ethanol, which easily can be done, being done in Brazil," he said, referring to global practices.

He said higher ethanol use could significantly benefit rural India. "If I said 60,000, 70,000 crore has gone to the rural economy every year, who is the maximum beneficiary? Supplier of rice, corn and cane," he said, indicating possible to rise in the farmers' income.

He said the industry is also examining ethanol blending in diesel. Technical discussions with domestic and international experts suggest that blending is possible with certain adjustments, and work is underway on developing a prototype for submission to the government.

"We are going to present a prototype to the government that this is possible and this can be done," he said, adding that coordination among stakeholders, including vehicle manufacturers and government departments, would be required.

Singh said the association has written to Prime Minister Narendra Modi outlining its recommendations. He stressed that policy support will be key to implementation. "Nothing happens without policy," he said, adding that the industry stands ready to support the government in scaling up ethanol use across sectors.

The association has also proposed exploring ethanol as an alternative to LPG for household use. Singh said ethanol is a cleaner fuel and is already used in cooking applications in some countries. He added that adoption in India would depend on policy support and regulatory clarity.

- ANI