India launched a new fuel variant on Friday as the West Asia conflict continued to strain the energy supply chain. The E85 fuel was unveiled by Union Minister Hardeep Singh Puri, and rollout will begin with 48 public sector fuel stations across the country. The launch came less than a day after India introduced its first E85-compatible, flex-fuel passenger car on June 4.
“With ethanol-based fuels like E85, our energy sources are now becoming our own fields. The farmer who grew grain for us until yesterday is now growing ‘fuel’ today as well. This is not just a change in fuel, but a change in mindset. E85 fuel, which is Rs 20 cheaper per liter, is not for ordinary vehicles, but only for flex-fuel vehicles,” he wrote on X.
Puri reiterated in subsequent posts that this fuel was “not for regular E20 compatible vehicles”. He also clarified that E85 would not lead to the “discontinuation” of E20 or petrol vehicles. The Oil Minister noted that E85 was being introduced soon after the “launch of motorcycles that will run on E20 to E85 blended fuel and four wheelers compatible with up to E100”.
What is in E85 fuel?
The E85 fuel blend contains 80% to 85% ethanol and 14% to 19% petrol.
It can only be used by flex-fuel vehicles capable of operating on ethanol blends ranging from E20 to E100. Puri said the expansion of E85 infrastructure is expected to help raise India’s overall ethanol blending level to nearly 26% by 2030-31.
Most cars currently plying on Indian roads are not compatible with this fuel variant. India transitioned to E20-compliant material standards in April 2023 — paving the way for ethanol blending up to 20%. But they are not equipped to handle fuel that is about 85% ethanol and usage will quickly damage the vehicle.
Where will E85 fuel be available?
Union Petroleum and Natural Gas Minister Hardeep Singh Puri unveiled the fuel at an IndianOil retail outlet in New Delhi on World Environment Day, He said the government plans to expand its availability to 500 outlets by December 2026 and to about 5,000 outlets by December 2027.
What is the cost?
The government has priced E85 at nearly Rs 20 per litre below conventional petrol, aiming to pass on the benefits of domestically produced ethanol to consumers.
Puri noted that New Delhi had increased ethanol blending in petrol from 1.53% in 2014 to the current 20% and achieved its target five years ahead of schedule. He added that the programme has helped save more than Rs 1.84 lakh crore in foreign exchange and reduced crude oil imports by nearly 302 lakh metric tonnes.