India Plans 5,200 Ethanol Fuel Stations to Support Flex-Fuel Vehicles

India's ethanol push gets a boost with 5,200 new fuel stations planned for E85 and E100 fuels across key cities.

The government is planning to set up 5,200 ethanol fuel stations in Delhi-NCR, Pune, Mumbai, and Nagpur. These stations will help people use flex-fuel vehicles. Petroleum Minister Hardeep Singh Puri shared this plan during a Hero MotoCorp event. The 5,200 stations are the first phase of a much larger plan. The government wants 5,000 stations by December 2026 and 50,000 by December 2027 if it is progressed as per plan. 

Learning from Past Mistakes

In the past, the government tried to bring in ethanol fuel, but it did not work. Minister Puri said the problem was that fuel stations were built before there were any cars or bikes that could use the fuel. People had no reason to buy the new fuel, so the stations remained underused.

This time, However things are different. Hero MotoCorp launched the Splendor+ Flex Fuel and HF Deluxe Flex Fuel motorcycles on June 3. These bikes can run on any mix from E20 to E85. Hero's CEO has also said the company plans to make all 12 motorcycles in its lineup flex-fuel compatible within the next two years.

And other manufacturers are preparing as well. Maruti Suzuki is developing flex-fuel vehicles, while Toyota has already showcased the flex-fuel Innova HyCross. With more compatible vehicles on the way, the new fuel stations are expected to see better demand than earlier attempts.

Current Progress with E20 Fuel

India has already made strong progress with E20 fuel. The goal was to reach 20 percent ethanol blending by late 2025. By December 2025, the country had already achieved a 19.98 percent average blend rate. More than 179 crore litres of ethanol had been blended into petrol by that time.

This achievement came years ahead of the original 2030 target. To support the growing demand, ethanol production capacity has also increased significantly since FY20. The upcoming 5,200 stations are seen as an expansion of this existing ethanol programme rather than a completely new initiative.

New Fuel Options: E85 and E100

The new stations will sell E85 and E100 fuel: E85 is a blend of 85 per cent ethanol and 15 per cent petrol, while E100 is pure ethanol. E20 fuel is already available at most regular petrol pumps, so these new stations are mainly meant for higher ethanol blends used by flex-fuel vehicles.

Will It Save You Money?

The government says E85 could cost less than regular petrol. Ethanol is produced from local agricultural crops, so its pricing is less dependent on global crude oil markets.

At present, petrol costs around Rs 102 per litre in Delhi. With fuel prices remaining high, the government believes ethanol could become a more affordable alternative for many motorists.

However there is still a tax issue, While E20 attracts 5 percent GST, higher ethanol blends currently face 18 percent GST. Minister Nitin Gadkari has said efforts are being made to reduce this rate. Until the tax issue is resolved, the full price benefit of E85 may not be reflected at the fuel pump.