India has taken another step towards expanding the use of alternative fuels with the launch of E85 ethanol-blended fuel in Delhi. Union Petroleum and Natural Gas Minister Hardeep Singh Puri inaugurated the capital's first E85 fuel dispensing station on June 5, marking the commercial debut of the fuel in the city.
The biggest highlight of the launch is its price. According to reports, E85 fuel is being sold at Rs 82.12 per litre in Delhi, making it Rs 20 cheaper than regular E20 petrol, which currently costs Rs 102.12 per litre. Premium XP95 petrol is priced even higher at Rs 109.24 per litre.
The first E85 fuel dispenser has been installed at an Indian Oil outlet on Pusa Road in New Delhi. Dedicated branding has been introduced to help consumers easily identify E85 pumps.
Why is E85 cheaper?
E85 fuel is a blend containing 85% ethanol and 15% petrol. The government is promoting ethanol-based fuels to reduce India's dependence on imported crude oil and support cleaner transportation.
Since ethanol has a lower energy content than petrol, E85 has been priced lower to make it attractive for consumers. The Rs 20-per-litre price advantage over E20 petrol is intended to offset the lower fuel efficiency associated with ethanol-rich blends.
What's the catch?
The lower price comes with a trade-off. Ethanol contains roughly one-third less energy than petrol, which means vehicles running on E85 are likely to consume more fuel to cover the same distance.
Industry estimates suggest E85-compatible vehicles could deliver 25-35% lower mileage compared to similar vehicles running on E20 petrol. As a result, the actual savings at the fuel station may be partly offset by increased fuel consumption.
Another limitation is vehicle compatibility. E85 can only be used in specially designed flex-fuel vehicles, and options remain extremely limited in India at present.
Which vehicles can run on E85?
Currently, only a few models on sale in India are certified to run on E85 fuel. These include:
* Hero Splendor+ Flex Fuel
* Hero HF Deluxe Flex Fuel
* Suzuki Gixxer SF 250 FFV
Hero MotoCorp recently entered the flex-fuel segment with its ethanol-compatible commuter motorcycles. The Splendor+ Flex Fuel is priced at Rs 82,710 (ex-showroom Delhi), while the HF Deluxe Flex Fuel costs Rs 72,792 (ex-showroom).
Suzuki's Gixxer SF 250 FFV is priced at Rs 1.98 lakh (ex-showroom).
Meanwhile, Maruti Suzuki has showcased a flex-fuel version of the Wagon R on multiple occasions, although the model has not yet been launched for consumers.
Expansion plans underway
For now, E85 fuel will be available only at select Indian Oil outlets across Delhi-NCR and Maharashtra. However, the government has announced plans to rapidly expand the network.
According to Petroleum Minister Hardeep Singh Puri, around 500 ethanol dispensing stations are expected to be operational across India by the end of 2026. The number is projected to rise to nearly 5,000 outlets by 2027.
The launch of E85 fuel is part of India's broader biofuel strategy aimed at reducing carbon emissions, improving energy security, and promoting cleaner fuel alternatives. While limited vehicle compatibility remains a challenge, the lower pump price could help drive adoption as more flex-fuel vehicles enter the market in the coming years.
