India has entered a new phase of its biofuel journey with the launch of the country’s first retail fuel station dispensing E85 fuel—a petrol blend containing 80–85% ethanol. The milestone marks a significant step in the government’s efforts to promote higher ethanol blends and expand the use of alternative fuels in the transportation sector.
The first E85 dispensing station was inaugurated in Delhi by Indian Oil Corporation (IOC), with the fuel priced at ₹82.12 per litre—approximately ₹20 cheaper than regular E20 petrol, which currently retails at ₹102.12 per litre in the national capital.
Speaking at the launch, Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, said the pricing strategy has been deliberately designed to encourage adoption.
“We have consciously structured the pricing to ensure that consumers are more than adequately compensated for any difference in calorific value, by making E85 approximately ₹20 per litre cheaper than E20 petrol,” he said.
E85 is a high-ethanol blended fuel comprising 80–85% ethanol and 14–19% petrol. It is specifically designed for use in Flex-Fuel Vehicles (FFVs), which can operate on a wide range of ethanol blends, from E20 to E100, offering consumers greater flexibility in fuel choice.
The launch follows recent announcements by two of India’s largest automobile manufacturers, Hero MotoCorp and Maruti Suzuki, which unveiled their first flex-fuel vehicle models capable of running on ethanol blends ranging from 20% to 85%. The development signals growing industry support for higher ethanol adoption in the mobility sector.
Automakers have welcomed the move but have also emphasized the importance of developing a widespread E85 refuelling network to support large-scale consumer adoption.
According to the minister, the initial rollout of E85 infrastructure will focus on key markets including Delhi-NCR, Mumbai, Pune, and Ahmedabad. Between 50 and 100 E85 dispensing stations are expected to become operational in these regions within the coming weeks.
The government has set an ambitious target of expanding the network to 500 E85 fuel stations by the end of this year and 5,000 outlets by the end of next year, creating a nationwide ecosystem for flex-fuel mobility.
India achieved its target of 20% ethanol blending in petrol ahead of schedule and is now seeking to create additional demand for biofuels through vehicles capable of operating on higher ethanol blends. Ethanol used under the programme is primarily produced from sugarcane and grain-based feedstocks.
The initiative aligns with the government’s broader objectives of reducing dependence on imported crude oil, strengthening energy security, supporting domestic agriculture, and diversifying transportation fuel options.
The transition towards higher ethanol blends comes amid ongoing discussions around vehicle compatibility and consumer awareness. During the rollout of E20 fuel, some consumers expressed concerns regarding the suitability of older vehicles and potential warranty implications.
However, industry organizations such as the Society of Indian Automobile Manufacturers and the Automotive Research Association of India, along with oil marketing companies, have maintained that E20 fuel is safe for compatible vehicles and can contribute significantly to energy security while benefiting India’s farming community.
Further strengthening the policy framework, the Ministry of Road Transport and Highways proposed amendments to vehicle regulations in April to formally introduce provisions for E85 and E100 fuels, signalling the government’s intent to move beyond the current E20 programme and accelerate the adoption of higher ethanol blends across the country.
