Govt plans major push for flex fuel vehicles amid global oil uncertainty

New Delhi — The government is preparing to accelerate the adoption of Flex Fuel Vehicles (FFVs) as part of a broader strategy to expand ethanol usage in transport, especially in light of volatility in global oil markets driven by the ongoing Middle East conflict.

The Ministry of Petroleum and Natural Gas (MoPNG) is set to convene a key stakeholder meeting to outline a roadmap for scaling up FFVs in India. The meeting, to be chaired by a senior official, will bring together major oil marketing companies like Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, along with automobile manufacturers and other stakeholders.

Discussions are expected to centre on policy measures to expand ethanol blending beyond the current levels. At present, India follows the E20 programme, where petrol is blended with 20 per cent ethanol. The government is now evaluating a transition towards FFVs that can run on ethanol blends of up to 85 per cent.

This renewed push is aimed at reducing India’s heavy dependence on crude oil imports, which currently account for over 85 per cent of domestic consumption, leaving the economy exposed to global price shocks and geopolitical disruptions.

India has already fast-tracked its ethanol blending target, advancing the 20 per cent goal from 2030 to the Ethanol Supply Year (ESY) 2025–26. The initiative is being driven under the Ethanol Blended Petrol (EBP) Programme, through which public sector oil companies supply ethanol-mixed fuel.

To ensure adequate raw material for ethanol production, the government has taken multiple steps, including expanding feedstock sources and promoting maize cultivation near ethanol plants. It has also approved the allocation of surplus rice from the Food Corporation of India and allowed diversion of sugar stocks for ethanol production.

Further, to support the sector, the government has introduced an administered pricing mechanism for ethanol procurement and reduced the GST rate on ethanol used under the EBP programme to 5 per cent.

The move signals a clear policy shift towards cleaner, domestically sourced fuel alternatives, with FFVs expected to play a key role in strengthening India’s long-term energy security.

With inputs from IANS