Union Road Transport and Highways Minister Nitin Gadkari has said a car designed to run entirely on ethanol could offer running costs equivalent to petrol priced at around ₹25 per litre. The remark, reported in September 2026, has renewed interest in alternative fuels and the government’s wider effort to reduce dependence on imported crude oil.
What the ₹25 comparison means
The figure should be understood as a comparison of running costs, not a promise that ethanol will necessarily be sold at ₹25 per litre everywhere. The actual cost of driving depends on the price of the fuel, the vehicle’s efficiency, engine design, local taxes and how the car is used. Ethanol has different energy content from petrol, so a litre-for-litre comparison alone can be misleading.
Gadkari has repeatedly promoted ethanol as a way to create demand for agricultural feedstocks, support farmers and diversify India’s energy mix. Flex-fuel vehicles are designed to use higher blends of ethanol, while a vehicle engineered for 100% ethanol would require suitable fuel-system and engine specifications. Buyers should check a manufacturer’s official compatibility guidance rather than assuming an ordinary petrol car can safely use pure ethanol.
Why India is exploring ethanol
India imports a large share of the crude oil it consumes, leaving the economy exposed to global price swings and geopolitical disruption. Blending ethanol with petrol has been one policy tool to reduce some of that dependence. Ethanol can be produced from agricultural materials, although the environmental and economic results vary depending on the crop, production method, water use and transport involved.
Higher ethanol use also raises questions about feedstock availability, food security, vehicle warranties and distribution infrastructure. Recent policy decisions around ethanol procurement show that the government must balance fuel goals with sugar supplies and the economics of producing ethanol from different sources.
What motorists should watch for
Before buying an ethanol-capable vehicle, motorists should look for confirmed launch details, certified fuel compatibility, warranty terms, service availability and the expected retail price. Running-cost estimates should be compared using real-world efficiency figures rather than headline claims alone.
The prospect of lower fuel costs is attractive, especially when petrol prices remain a major household expense. But the practical benefit will depend on whether the vehicle is commercially available, how much ethanol costs at the pump and whether the car’s efficiency makes the promised savings realistic. Until detailed specifications and prices are published, the ₹25 figure remains a ministerial estimate of equivalent running cost rather than a guaranteed nationwide rate.
SEO keywords: Nitin Gadkari ethanol car, 100% ethanol vehicle, ₹25 fuel cost, flex fuel cars India, alternative fuel news.
Source: The Economic Times, September 27, 2026.
Comments