Flex-Fuel Vehicles Key to Reducing Crude Oil Imports, Boosting Farmers’ Income and Advancing Green Mobility: Hardeep Singh Puri – Indian PSU

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Wednesday said that Flex Fuel Vehicles (FFVs) offer India a practical pathway to reduce crude oil imports, generate additional income for farmers, and accelerate the country’s transition towards low-carbon mobility.

Speaking at the launch of Hero MotoCorp’s first flex-fuel motorcycles in New Delhi, Puri described the event as a landmark moment in India’s energy transition journey. Union Minister for Road Transport and Highways Nitin Gadkari was also present at the event.

The launch of the Splendor+ and HF Deluxe Flex Fuel motorcycles marks India’s entry into mass-market flex-fuel mobility. The motorcycles are capable of operating on ethanol-petrol blends ranging from E20 to E85, reflecting the government’s push towards cleaner and more self-reliant transportation solutions.

Calling the launch a “new chapter in India’s energy history,” Puri highlighted that India has one of the world’s largest two-wheeler ecosystems, with more than 300 million active two-wheelers on the road. He said widespread adoption of flex-fuel technology could significantly transform the country’s mobility landscape.

The minister noted that India’s ethanol blending levels have risen dramatically from just 1.5 per cent in 2014 to 20 per cent today. He described the ethanol blending programme as one of the country’s most successful energy transition initiatives.

According to Puri, since Ethanol Supply Year (ESY) 2014-15, the programme has helped India save approximately ₹1.84 lakh crore in foreign exchange, substitute 302 lakh metric tonnes of crude oil, and reduce carbon dioxide emissions by 909 lakh metric tonnes. Importantly, it has generated earnings of around ₹1.58 lakh crore for farmers, transforming them from “Annadatas” to “Urjadatas.”

He emphasized that India currently imports nearly 88.5 per cent of its crude oil requirement, making energy security vulnerable to global geopolitical developments. Increased ethanol usage, he said, can play a crucial role in reducing import dependence while strengthening rural incomes.

Puri further explained that even if flex-fuel vehicles account for just one per cent of annual petrol vehicle sales during ESY 2026-27, it would create demand for approximately four crore litres of ethanol. This could result in payments of about ₹266 crore to distilleries, foreign exchange savings of ₹195 crore, reduction of 0.28 lakh metric tonnes in crude oil imports, and a net reduction of nearly 0.86 lakh metric tonnes of carbon dioxide emissions.

He added that nearly ₹160 crore from such ethanol demand would flow directly to Indian farmers rather than being spent on imported crude oil, creating a multiplier effect in the rural economy.

Highlighting the advantages of flex-fuel vehicles, Puri said E85-compatible vehicles offer lower manufacturing costs, require minimal additional infrastructure investment, and can be rolled out significantly faster than electric vehicle charging networks. Unlike EVs, which depend heavily on imported battery components, flex-fuel vehicles rely on domestically produced biofuels, making them a more self-reliant mobility option with a lower overall carbon footprint.

Addressing concerns regarding higher ethanol blends, the minister said India’s E20 rollout was preceded by extensive testing conducted by industry bodies and vehicle manufacturers. Referring to global experiences, particularly Brazil’s successful adoption of high-ethanol fuel blends, he stated that flex-fuel technology is proven, scalable, and reliable.

Puri also stressed the importance of affordability for consumers. Studies indicate that if E85 fuel is priced lower than E20 fuel, consumers could recover the additional vehicle cost within about three years through fuel savings. He revealed that the government is actively examining policy measures, including pricing support and targeted incentives, to accelerate adoption.

Congratulating Hero MotoCorp for taking the lead, the minister said the company’s new motorcycles represent a significant step towards building an energy-secure and environmentally sustainable transportation ecosystem.

He reiterated that supportive policies and industry participation can help position India as a global leader in flex-fuel mobility solutions while simultaneously enhancing energy security, reducing emissions, and boosting farmers’ incomes.