Vinod Bhat
New Delhi: Union Minister for Petroleum and Natural Gas Shri Hardeep Singh Puri launched E85 fuel at an IndianOil retail outlet in New Delhi today on the occasion of World Environment Day 2026. Senior officials of the Ministry of Petroleum and Natural Gas, and CMDs of public sector OMCs were also present during the event.
E85 is a high-ethanol blended fuel comprising 80–85 per cent ethanol and 14–19 per cent petrol, specifically designed for use in flex-fuel vehicles. The initiative aims to facilitate the adoption of Flex-Fuel Vehicles (FFVs), which are capable of operating on ethanol blends from E20 to E100, without restricting consumers to a single blend.
The rollout commences across 48 Public Sector OMC’s retail outlets (ROs) in the country, enabling flex-fuel vehicle users to access this cleaner fuel. The initiative is slated for nationwide expansion.The same would be scaled up to 500 ROs by December 2026 and about 5000 ROs by December 2027 and help raise India’s aggregate ethanol blending levels to nearly 26 per cent by 2030-31.
Speaking at the event, the Minister 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 one of the lowest increases of fuel prices since February 2026.
Highlighting that ethanol blending has increased from 1.53 per cent in 2014 to 20 per cent today, with the target achieved five years ahead of schedule, he stated that this transformation has helped save over ₹1.84 lakh crore in foreign exchange and substituted nearly 302 lakh metric tonnes of crude oil imports. This has been driven by the contribution of India’s farmers, who have evolved from being the country’s “Annadatas” to becoming its “Urjadatas” as well.
Benefits of E85:
- E85 is priced nearly ₹20 per litre lower than conventional petrol to ensure that the economic benefits of domestically produced ethanol are passed on to consumers.
- Flex-fuel vehicles operating on E85 can reduce lifecycle greenhouse gas emissions by around 61 per cent compared to conventional petrol vehicles.
- With a Research Octane Number (RON) of about 108, ethanol offers superior knock resistance that allows engines to operate at higher compression ratios and optimized ignition timing.
- Higher ethanol blends promote cleaner and more complete combustion, resulting in near-zero particulate matter emissions contributing to improved urban air quality.
Elaborating further, the Minister stated that if 50 per cent of new two-wheelers and four-wheelers transition to flex-fuel vehicles, it could generate demand for over 312 crore litres of ethanol and result in nearly ₹12,403 crore flowing directly to farmers. He added that such a transition could also lead to annual foreign exchange savings of nearly ₹15,151 crore and reduction of CO2 emissions by 66.4 lakh metric tonnes.
Remarking that India’s flex-fuel journey draws inspiration from proven global success while being tailored to the domestic aspirations and strengths, the Minister noted that Brazil has demonstrated the long-term viability of higher ethanol blends over decades, with over 80% of its light vehicle fleet currently operating on flex-fuel technology.
The Minister stated that the recent launch of flex-fuel compatible two-wheelers, four-wheelers and now E85 fuel marks India’s transition from pilot initiatives towards a structured national flex-fuel ecosystem. He urged States to support the transition through enabling taxation policies for E85 fuel and flex-fuel vehicles.
Addressing the misconceptions surrounding ethanol-blended fuels, the Minister noted that:
- E85 fuel is meant exclusively for specially designed flex-fuel vehicles, not for normal petrol vehicles.
- Since E20 became the standard fuel across the country, there has not been a single reported case of engine failure or vehicle breakdown attributable to ethanol blending.
- E20-compatible vehicles deliver improved acceleration and better ride quality, particularly under city driving conditions.
- Usage of E20 fuel has no impact on the validity of vehicle insurance in India.
The Minister further noted that flex-fuel vehicles remain highly competitive with EVs due to their lower acquisition costs and ability to leverage existing fuel infrastructure. He noted that while EV technologies rely significantly on imported batteries and critical minerals, E85-powered vehicles run on domestically produced ethanol derived from the sweat and toil of Indian farmers.
