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India Accelerates Flex Fuel Vehicle Push Amid Global Oil Market Turmoil

The Indian government is set to hold a crucial stakeholder meeting to accelerate the adoption of Flex Fuel Vehicles (FFVs) capable of running on high ethanol blends. This push aims to reduce the country's heavy dependence on crude oil imports, which stands at over 85%, amid global market uncertainties. The strategy involves moving beyond the current E20 mandate towards blends of up to 85% ethanol. The national ethanol blending target has already been advanced to 2025-26, supported by measures to boost feedstock supply and production.

Key Points: India's Flex Fuel Vehicle Roadmap for Energy Security

  • Stakeholder meet to chart FFV roadmap
  • Aim to move beyond E20 to 85% ethanol blends
  • Target to cut 85% crude import dependence
  • Ethanol blending target advanced to 2025-26
3 min read

Govt eyes big push for flex fuel vehicles amid turmoil in global oil market

Government plans major push for Flex Fuel Vehicles (FFVs) to cut oil imports, with a key stakeholder meeting to chart the roadmap for high-ethanol blends.

"The renewed push is being considered to cut India's dependence on oil imports and enhance energy security - Ministry Sources"

New Delhi, April 20

The government is looking at stepping up efforts to promote Flex Fuel Vehicles as it looks to deepen ethanol use in the transport sector amid disruptions in the world oil market due to the Middle East conflict.

The Ministry of Petroleum and Natural Gas (MoPNG) is scheduled to hold a key stakeholder meeting on Monday to chart out a road map for adopting FFVs in India, according to reliable sources.

The meeting, to be chaired by the Additional Secretary at MoPNG, will be attended by representatives from Oil Marketing Companies (OMCs) including Indian Oil, Bharat Petroleum and Hindustan Petroleum, automobile manufacturers and other stakeholders.

Discussions are expected to focus on policy measures required to expand ethanol blending with fuels beyond the current mandate.

India at present follows an E20 programme, under which petrol is blended with 20 per cent ethanol. The government is now exploring options to move towards FFVs capable of running on ethanol blends of up to 85 per cent.

The renewed push is being considered to cut India's dependence on oil imports and enhance energy security given the uncertainties in the global oil market.

India currently imports over 85 per cent of its crude oil which makes the economy vulnerable to global shocks in the oil market. The Government is, therefore, keen to reduce dependence on oil imports

Meanwhile, the country's target of blending 20 per cent ethanol with petrol was advanced from 2030 earlier to Ethanol Supply Year (ESY) 2025-26 due to the rapid expansion.

The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme wherein Public Sector OMCs sell ethanol blended with petrol.

In order to ensure availability of feedstock for ethanol production to achieve 20 per cent Ethanol blending target by the Ethanol Supply Year (ESY) 2025-26, the Government have taken several steps which include expansion of feedstock for Ethanol production, development of maize clusters around ethanol plants to increase the production of maize in catchment area of grain based distilleries.

The Government has also approved allocation of 52 Lakh Metric Tonne (LMT) of surplus Food Corporation of India (FCI) rice for ethanol production, each for the ESY 2024-25 (from November 1, 2024 to October 31, 2025) and ESY 2025-26 up to June 30, 2026, and diversion of 40 LMT of sugar for ethanol production allowed for the ESY 2024-25.

Further, to boost ethanol production as well as supply in the country, the Government has introduced administered price mechanism for Ethanol procurement under the Ethanol Blended Petrol (EBP) Programme, lowered GST rate to 5 per cent for Ethanol for EBP Programme.

- IANS

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Reader Comments

S
Sarah B
While the intent is good, I'm concerned about the diversion of food grains like rice and sugar for fuel. In a country with food security challenges, is this the right priority? We need a balanced approach that doesn't impact food prices for common people.
V
Vikram M
Good step, but what about the existing cars on the road? Will there be a scrappage policy or retrofit options? Also, need to ensure ethanol pumps are as widespread as petrol pumps, otherwise it's just another half-baked scheme. Execution is key!
P
Priya S
Finally! This has been long overdue. With global oil prices so volatile due to conflicts, we need our own *aatmanirbharta* in energy. Hope the car manufacturers come on board quickly with affordable FFV models for the middle class.
R
Rohit P
The environmental angle is also important. Ethanol burns cleaner than petrol. Less pollution in our cities is a huge bonus. Hope this push is combined with more investment in public transport for a holistic solution.
M
Michael C
Interesting to see India's ambitious timeline. Moving the E20 target to 2025-26 is aggressive. The success will depend heavily on building the entire supply chain—from farm to distillery to fuel station. A massive logistical challenge.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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