The government has launched E85 fuel for E85-compatible flex-fuel vehicles and is in discussions with the automobile industry regarding the future of ethanol-based fuels. Petroleum and Natural Gas Minister Hardeep Singh Puri mentioned that India has exceeded its ethanol blending targets well ahead of schedule.
Ethanol blending in petrol has risen from 1.5% in 2014 to 10% by November 2022, surpassing the 20% blending goal set for 2030. Minister Puri stated that extensive consultations are ongoing with various industry stakeholders, including the automobile association SIAM, emphasizing that E85 fuel has been introduced solely for E85-compatible flex-fuel vehicles.
Minister Puri highlighted India’s progress towards energy self-reliance through increased domestic exploration, higher biofuel blending, and expanding renewable energy capacity. He noted the allocation of Rs 90,000 crore under the Samudra Manthan initiative for drilling new wells and enhancing domestic energy production.
Addressing concerns about recent fuel price hikes, Minister Puri pointed out that petrol prices in Delhi are currently lower than four years ago, attributing this to multiple excise duty reductions by the Centre. He mentioned excise duty cuts in November 2021, May 2022, and more recently, along with reductions in value-added tax by several BJP-ruled states.
Regarding the reduction in subsidised LPG cylinders under the Pradhan Mantri Ujjwala Yojana from nine to four, Minister Puri explained that this decision was made due to reports of misusing subsidised cylinders. He highlighted instances where beneficiaries were allegedly diverting cylinders for commercial purposes or resale, despite not needing the full quota.
