Petrol to become Rs 20 cheaper? Modi government set to launch E85 fuel, plans to set up 5000 stations across India, Ethanol to...
Union Petroleum and Natural Gas Minister Hardeep Singh Puri said that the growing use of ethanol will help reduce India's dependence on crude oil imports.
Image for representational purposes only
New Delhi: Owing to the Iran conflict and tension in the Middle East, many countries around the world have witnessed a sharp rise in petrol and diesel prices. Fuel prices were increased four times in May in India as well. It is important to note that since May 15, petrol prices have gone up by Rs 7.38 per liter, while diesel prices have risen by Rs 7.52 per litre. The sale of E85 petrol may begin soon amid the rising fuel prices.
Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, shared this information while inaugurating an E85 fuel dispensing facility in Delhi. E85 petrol is expected to be up to Rs 20 per litre cheaper.
What is E85 petrol, and why will it be up to 20 cheaper?
E85 is a special type of fuel that contains 85 percent ethanol and 15 percent petrol. The Modi government has decided to price it Rs 20 per litre lower than E20 petrol. This is because ethanol has approximately one-third lower energy content than petrol. The lower price is intended to compensate consumers for this difference in energy efficiency.
Currently, the E20 petrol will continue to be available across the country, as most vehicles can run smoothly on fuel containing a 20 percent ethanol blend. The government plans to gradually expand the availability of E85 fuel in phases.
E85 Fuel Stations to Be Launched in These Cities
According to Hardeep Singh Puri, 50 to 100 E85 fuel stations will initially be launched in Delhi-NCR, Pune, Mumbai, and Nagpur. The government aims to increase this number to 500 stations by the end of 2026 and further expand it to 5,000 stations by the end of 2027. The government also aims to increase the number of vehicles capable of running on it. Recently, Maruti Suzuki and Hero MotoCorp launched vehicles that can use E85 fuel.
Here are some of the key details:
- Union Petroleum and Natural Gas Minister Hardeep Singh Puri said that the growing use of ethanol will help reduce India's dependence on crude oil imports.
- Currently, the country's fossil fuel import bill stands at approximately $120 billion.
- If more vehicles begin operating on E100 fuel (100% ethanol), the country's import expenditure could be reduced even further.
- Indian Oil Corporation is already operating around 400 E100 fuel stations across Delhi, Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu.
- Hardeep Singh Puri said that if half of all two-wheelers and four-wheelers manufactured in the country are equipped with flex-fuel technology, it could generate an additional demand of 3.118 billion litres of ethanol.
- This, in turn, could provide farmers with an estimated 12,403 crore in additional income.
Hardeep Singh Puri said India has increased ethanol blending from 1.5% in 2014 to successfully achieve the 20% ethanol blending target. As a result of this program, the country has replaced 30.2 million metric tonnes of crude oil imports, leading to foreign exchange savings of approximately 1.84 lakh crore.
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