Page 49 - Policy Economic Report- June'26

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

In contrast, Flex fuel vehicles depend on homegrown biofuels and avoid the battery related emissions,
making them Completely Atmanirbhar and resulting in lower carbon footprint. Further, Flex fuel demand
would provide immediate income support to our farmers through increased demand for ethanol
feedstock.

Sh. Puri further stated that Flex-fuel mobility must also make economic sense for consumers. Studies
indicate that if E85 fuel is priced appropriately lower compared to E20, consumers can recover the cost of
the vehicle within approximately three years through fuel savings achieved due to the lower price of fuel.
The Minister added that the Government is actively examining supportive policy frameworks to accelerate
affordable adoption.

Addressing common misconceptions about Flexi Fuel, the Minister clarified that India’s E20 rollout
followed extensive testing by SIAM, ARAI, IOCL and vehicle manufacturers. Global experience, including
Brazil’s successful adoption of higher ethanol blends, which I had the opportunity of witnessing during my
posting to Brasilia between 2006-2008, demonstrates that flex-fuel mobility is proven, scalable and
reliable, the minister further added.

Sh. Puri congratulated Hero MotoCorp for taking a pioneering step in this national journey. The company's
new motorcycles are equipped with internal combustible engines and upgraded fuel systems that can
operate on any blend of petrol and ethanol from E20 to E85. The minister added that supportive policies,
including fuel pricing support and targeted incentives can speed up adoption, create affordability and
position India as a global leader in flex- fuel mobility solutions.

2. Shri Hardeep Singh Puri holds talks with Venezuela's Acting President; Reaffirms Venezuela's
importance in India's energy diversification strategy

Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri called on H.E. Ms. Delcy Eloína
Rodríguez Gómez, Acting President of the Bolivarian Republic of Venezuela, in New Delhi on 04 June 2026,
along with the senior officials of the Ministry and Chairpersons of various Public Sector Oil companies.
Both leaders discussed opportunities for building an enduring energy partnership between the two
countries.

During the meeting, the Minister noted that India and Venezuela share a natural partnership rooted in a
long-standing friendship between the two countries. He reaffirmed India’s strong support for Venezuela's
energy reconstruction, adding that Indian companies are ready to deepen their presence in Venezuela.
Recognizing Venezuela’s key role in India’s energy diversification strategy, he conveyed India’s keenness
to deepen its energy trade with Venezuela.

Acknowledging India as a reliable partner of Venezuela, the Acting President welcomed Indian companies
to actively participate in Venezuela’s reformed oil and gas sector. She highlighted the complementarities
that exist between India and Venezuela in the energy sector and invited an Indian delegation to visit
Venezuela to explore opportunities for enhanced collaboration.

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