India Gets First E85 Fuel Pump; Fuel Priced at Rs 20 Cheaper Than E20 Petrol

India on Friday got its first retail fuel station dispensing E85, i.e., petrol blend containing 85% ethanol, marking a new phase in the country's biofuel programme as the government seeks to expand the use of higher ethanol blends in transport.

The state-run Indian Oil Corporation opened the first E85 dispensing station in Delhi, with the fuel priced at Rs 82.12 per litre, around Rs 20 lower than regular petrol sold in the national capital at Rs 102.12 per litre.

"I think we have consciously structured the pricing to ensure that consumers are more than adequately compensated for any lack in calorific value or respect by making E85 approximately Rs. 20 per litre cheaper than E20," Minster of Petroleum and Natural Gas Hardeep Singh Puri said.

The launch comes a few days after two of India's largest vehicle makers, Hero MotoCorp and Maruti Suzuki, unveiled their first flex-fuel models capable of operating on petrol blended with 20% to 85% ethanol, signalling growing industry support for higher ethanol blends.

Automakers have been preparing to introduce more flex-fuel vehicles, but have stressed that wider availability of E85 fuel will be necessary to support adoption.

Rollout of E85 infrastructure will begin in key markets including Delhi-NCR, Mumbai, Pune and Ahmedabad, where between 50 and 100 dispensing stations are expected to be established within few weeks, Puri said. The tarhet is to expand the network to 500 pumps by the end of this year and further to 5,000 outlets by the end of next year.

India achieved its target of 20% ethanol blending in petrol ahead of schedule and is now looking to create additional demand for biofuels through vehicles designed to run on a wider range of ethanol blends.

Ethanol used in the programme is sourced largely from sugarcane and grain-based feedstocks. The initiative forms a key part of the government's efforts to reduce dependence on imported crude oil, support domestic agriculture and diversify transport fuel options.

The shift towards higher ethanol blends follows concerns raised by some consumers during the transition to E20 fuel, particularly regarding compatibility with older vehicles and possible warranty implications.

Industry bodies, including 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 help strengthen energy security while supporting farmers.

In April, the Ministry of Road Transport and Highways proposed amendments to vehicle regulations to formally introduce provisions for E85 and E100 fuels, signalling the government's intention to move beyond the current E20 programme