India has launched E85 fuel at 48 retail outlets of public sector oil companies, marking a major step in expanding the country’s flex-fuel ecosystem. E85 contains 80% to 85% ethanol and 14% to 19% petrol and is designed specifically for flex-fuel vehicles that can run on blends ranging from E20 to E100.
The government plans to expand E85 availability to 500 fuel stations by December 2026 and around 5,000 stations by December 2027. The initiative is expected to help raise India’s overall ethanol blending level to nearly 26% by 2030-31.
E85 fuel has been launched in Delhi at Rs 82.12 per litre, around Rs 20 cheaper than E20 petrol. The government says the lower price passes on the benefits of domestically produced ethanol to consumers, while flex-fuel vehicles using E85 can cut lifecycle greenhouse gas emissions by about 61% compared to conventional petrol vehicles.
India’s ethanol blending rate has risen from 1.53% in 2014 to 20% today, achieving the target five years ahead of schedule. The program has helped save over Rs 1.84 lakh crore in foreign exchange and reduced crude oil imports by nearly 302 lakh metric tonnes.
The government estimates that if 50% of new two-wheelers and four-wheelers switch to flex-fuel vehicles, demand for ethanol could exceed 312 crore litres annually. This could generate around Rs 12,403 crore for farmers, save nearly Rs 15,151 crore in foreign exchange every year, and cut CO2 emissions by 66.4 lakh metric tonnes.
Petroleum Minister Hardeep Singh Puri said E85-powered vehicles run on ethanol produced by Indian farmers, reducing dependence on imported oil and supporting India’s goal of energy self-reliance. He also clarified that E85 is only for specially designed flex-fuel vehicles and should not be used in regular petrol vehicles.
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