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Informist, Friday, Jun. 5, 2026

 

--Oil Minister launches E85 fuel for flex fuel vehicles in New Delhi 
--Puri: Facing trilemma of energy availability, affordability, sustainability 
--CONTEXT: Oil Minister Puri at launch of E85 fuel at an Indian Oil pump 

--Oil Minister: Consciously made E85 fuel INR 20/ltr cheaper than E20 fuel 

--Oil Minister: Made E85 fuel cheaper to make it attractive, faster adoption

--Oil Minister: E20 fuel to continue separately despite E85 roll-out  
--Oil Minister: Confident E85 fuel will help reduce fuel import dependency 
--Oil Minister: E85 fuel meant for specific, compatible flex fuel vehicles 
--Puri: Energy transition to be success with E85, flex fuel vehicle launch

 

NEW DELHI – In a first, India has started dispensing E85 fuel, or 85% ethanol-blended petrol, to power flex-fuel vehicles that can run on ethanol–petrol blends ranging from E20 to E100. Launching the fuel, Oil Minister Hardeep Singh Puri said that E85 fuel is priced INR 20 per litre cheaper than E20 or commonly available petrol. Until now, India has been dispensing E20 or 20% ethanol-blended petrol across the country. 

 

"We have consciously structured the pricing to ensure that consumers are more than adequately compensated for any lack in calorific value by making E85 approximately Rs 20 per litre cheaper than E20...We will ensure that E85 fuel that is dispensed for your vehicle will be INR 20 per litre cheaper than the normal E20 blended fuel," Puri said, launching E85 fuel at an Indian Oil Corp. outlet in New Delhi.

 

With the launch, E85 fuel will be available across 48 retail outlets of public oil marketing companies. By December, E85 would be available at nearly 500 outlets and at 5,000 outlets across major cities by the end of 2027, raising India's aggregate ethanol blending levels to nearly 26% by 2030-31.

 

Oil marketing companies will continue dispensing E20 as the standard petrol across the country, and select retail outlets will start selling E85 from separate dispensing units, Puri said. 

 

Though India had surplus ethanol production capacity to supply E85, it lacked operational and marketing infrastructure, such as the commercial rollout of E85-compliant vehicles, differential pricing policy, and separate dispensing units at retail outlets. However, surging crude oil prices and draining foreign exchange reserves amid the prolonged war in West Asia have pushed the government to formulate supportive policies. 

 

On Thursday, Puri promoted the commercial launches of Hero MotoCorp's first flex-fuel motorcycle and Maruti Suzuki's first flex-fuel passenger vehicle. Although Indian automakers had the technology and prototypes of flex-fuel vehicles for some years now, they remained hesitant to commercially release them due to lack of supportive policies and confidence in consumer adoption. 

 

The launch of E85 fuel and higher ethanol-blend-compliant flex-fuel vehicles comes after the government recently amended rules to formally recognise these fuels within the regulatory framework to facilitate their adoption. In April, the Ministry of Road Transport and Highways issued a notification, proposing amendments to the Central Motor Vehicles Rules to include higher ethanol blends such as E85 and E100, as well as biodiesel and hydrogen blended gas. 

 

The government has been actively promoting biofuel blending across petrol, diesel, and aviation turbine fuel to reduce dependency on crude oil imports and save foreign exchange. The prolonged conflict in West Asia has only given this an impetus. India is a major producer of sugarcane, rice, and maize, and has been increasingly diverting these crops for ethanol production.

 

Puri said India has demonstrated its ability to successfully balance the "energy trilemma" of energy availability, affordability, and sustainability, while ensuring stable fuel supplies, protecting consumers from global energy volatility to the maximum possible extent. He noted that India has seen one of the lowest increases in fuel prices since February 2026.

 

"In other words, India has the lowest (increase in petrol price), I would not say absolutely lowest, because Japan has the lowest increase actually," Puri said, adding that India saw petrol prices rising 7.5-8.5% since the war broke out in West Asia. 

The government had timed the launch of E85 fuel with World Environment Day, and said that flex-fuel vehicles running on E85 could reduce lifecycle greenhouse gas emissions by around 61% compared to conventional petrol vehicles.  End

         

Reported by Afra Abubacker

Edited by Avishek Dutta

 

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