The price of E85 ethanol-blended fuel would significantly below regular petrol as government looks to accelerate adoption of flex-fuel vehicles and reduce dependence on imported crude oil, according to Minister of Petroleum amd Natural Gas Hardeep Singh Puri.
While speaking at the launch of Hero MotoCorp's flex-fuel variants of the Splendor and HF Deluxe motorcycles, Puri said the government is working on measures to make higher ethanol blends attractive for consumers.
"E85 fuel will be used for vehicles compliant with E85. It will be substantially cheaper than normal fuel," he said.
The minister did not share any further details regarding the pricing, but indicated that a policy announcement could come soon.
"We are actively examining supportive policy frameworks to accelerate affordable adoption," he said. "I've already said it will be substantially cheaper. You'll find out in a few days."
The comments come as India pushes beyond its ethanol-blending programme, which has emerged as a key part of the government's strategy to cut oil imports, lower emissions and support rural incomes.
Puri said the country had increased ethanol blending in petrol from about 1.5% in 2014 to 20% today, achieving its original 2030 target six years ahead of schedule.
According to the minister, the programme has helped save Rs 1.84 lakh crore in foreign exchange, substitute 302 lakh metric tonnes of crude oil and reduce carbon dioxide emissions by 909 lakh metric tonnes. He added that farmers had earned about Rs 1.58 lakh crore from ethanol production.
The launch of Hero MotoCorp's flex-fuel motorcycles marks India's entry into mass-market flex-fuel mobility, Puri said, noting that the country has an active fleet of more than 300 million two-wheelers.
He said even limited adoption of E85-compatible vehicles could create substantial demand for ethanol. If just 1% of annual petrol vehicle sales switch to E85 during the 2026-27 ethanol supply year, more than 40 million litres of additional ethanol demand would be generated, while foreign exchange savings could reach about Rs 195 crore.
Puri said India's future mobility strategy would not rely on a single technology and would instead combine electric vehicles, biofuels, hydrogen and renewable energy solutions suited to local requirements.
"A calibrated approach comprising fuel price support and targeted fiscal incentives can create strong consumer economics and accelerate adoption," he said.