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Cheaper than petrol, but there's a catch: India rolls out E85 fuel

India has begun a limited rollout of E85 fuel for flex-fuel vehicles. Officials say it will cost less than petrol and reach thousands of outlets over the next two years.

By Sarwesh Sri Bardhan

Jun 06, 2026 20:35 IST

India has officially introduced E85 fuel, with Union Petroleum and Natural Gas Minister Hardeep Singh Puri unveiling the new blend at an IndianOil retail outlet in New Delhi on World Environment Day, according to the official ministry release.

The rollout begins at 48 public sector fuel stations, and the fuel is meant for flex-fuel vehicles that can operate on higher ethanol blends.

Puri, who was joined by Road Transport and Highways Minister Nitin Gadkari at the launch of Hero MotoCorp’s first flex-fuel motorcycle, called the event a “new chapter” in India’s energy history.

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A fresh brew in the fuel tank

E85 contains 80% to 85% ethanol and 14% to 19% petrol, making it substantially different from the E20 blend now used by most vehicles in India.

The government has priced E85 nearly Rs 20 per liter below petrol, with officials saying the discount reflects ethanol’s lower energy content and is intended to improve the economics of flex-fuel ownership.

In a post, Puri said, “With ethanol-based fuels like E85, our energy sources are now becoming our own fields,” adding that the fuel “is not for ordinary vehicles but only for flex-fuel vehicles.” He also said it was “not for regular E20-compatible vehicles.”

A measured march across the forecourts

The E85 launch comes as the government expands infrastructure for ethanol-blended fuel.

The fuel will first be available in Delhi and at 48 stations across the country, with the network set to expand to 500 outlets by December 2026 and about 5,000 outlets by December 2027.

The first phase may cover stations in Delhi-NCR, Pune, Mumbai, and Nagpur, while Puri said the E20 blend will continue to be available at fuel stations because most vehicles on Indian roads are compatible only up to that level.

The expansion of E85 will run alongside the introduction of more vehicles designed for higher ethanol blends.

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Fields and fuel find common cause

The ministry has linked the E85 rollout to India’s wider energy-security and rural-economy agenda.

PIB said the country’s ethanol blending program has saved Rs 1.84 lakh crore in foreign exchange since ESY 2014-15, substituted 302 lakh metric tons of crude oil, and reduced carbon dioxide emissions by 909 lakh metric tons while adding Rs 1.58 lakh crore in earnings for farmers.

Puri said flex-fuel vehicles offer a practical way to reduce crude imports, support farm incomes, and advance low-carbon mobility as India pursues a mobility mix that also includes EVs, biofuels, hydrogen, and renewables.

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