The government has launched a new fuel called E85, which contains more ethanol and is specifically designed for flex-fuel vehicles. It is ₹20 per liter cheaper than regular petrol. Initially, this fuel will be available only at select petrol pumps and can be used only in vehicles with flex-fuel engines. Union Petroleum and Natural Gas Minister Hardeep Singh Puri launched E85 fuel at a petrol pump of Indian Oil on the occasion of World Environment Day. This fuel will be sold at 48 government petrol pumps across the country. He said that the government plans to make it available in 500 petrol pumps by December 2026 and about 5,000 petrol pumps by December 2027.
How is it different from petrol?
E85 fuel contains 80-85 percent ethanol and 14-19 percent petrol. However, it can only be used in flex-fuel vehicles that can run on fuel mixtures ranging from E20 to E100. These vehicles are equipped with an advanced engine control unit (ECU), which can automatically adjust performance according to different levels of ethanol in the fuel. Puri said the expansion of E85 infrastructure is expected to help increase the overall level of ethanol blending in India to about 26 percent by 2030-31. He said that the government has kept the price of E85 about ₹ 20 per liter lower than regular petrol so that the benefits of locally produced ethanol can directly reach the consumers.
Saving of more than ₹1.84 lakh crore
The minister said India has increased the rate of ethanol mixing in petrol to 20 per cent from 1.53 per cent in 2014 and has achieved its target five years ahead of schedule. He said that this program has resulted in saving of more than ₹1.84 lakh crore in foreign exchange and reduction in crude oil imports by about 302 lakh metric tonnes. According to ministry estimates, flex-fuel vehicles running on E85 can reduce greenhouse gas emissions by about 61 percent compared to conventional petrol vehicles. Ethanol’s high octane rating results in better engine performance and cleaner combustion, significantly reducing particulate emissions.
and scope for savings
Puri said that if half of the new two-wheelers and passenger vehicles sold in India adopt flex-fuel technology, the annual demand for ethanol could increase by more than 312 crore litres, leading to additional income of about ₹12,403 crore to farmers. He said this change could lead to foreign exchange savings of ₹15,151 crore every year and reduction in carbon dioxide emissions by 66.4 lakh metric tonnes. Drawing comparisons with Brazil – where more than 80 per cent of light vehicles run on flex-fuel technology – Puri said India is moving beyond pilot projects towards a systematic national flex-fuel ecosystem.
appeal to states
He also tried to address concerns about ethanol-blended fuel. He clarified that E85 is specifically designed for flex-fuel vehicles and said that since E20 became the national standard fuel, there have been no incidents of engine damage due to ethanol blending. The Minister appealed to state governments to support this transition by adopting favorable tax policies for E85 fuel and flex-fuel vehicles. He described ethanol as an important part of India’s journey to become energy self-reliant. “Every liter of ethanol replaces imported fossil fuels,” Puri said. “The spirit of ‘self-reliant India’ is embedded in every drop of E85.”