Centre Plans Wider E85 Rollout; Fuel To Reach 5,000 Pumps By 2027

Union Petroleum and Natural Gas Minister Hardeep Singh Puri is set to launch E85 fuel on World Environment Day, marking another step in India's ethanol-based fuel programme.

E85 is a fuel blend containing 85% ethanol and 15% petrol. The fuel will initially be available at select outlets, beginning with an Indian Oil petrol pump on Delhi's Pusa Road.

According to Puri, 50-100 dispensing stations will be operational across Delhi-NCR, Mumbai, Pune and Nagpur in the initial phase. The network is expected to expand to 500 outlets by the end of 2026 and around 5,000 stations across most major cities by the end of next year.

The government is also examining measures to support affordable and wider adoption of E85 fuel as flex-fuel vehicles gradually enter the market.

Why Is The Centre Promoting E85 Fuel?

The government's push is centred on affordability, energy security and higher ethanol consumption. E85 fuel will be priced significantly below conventional petrol, which could improve the economics of owning flex-fuel vehicles.

Studies cited by the minister suggest owners of flex-fuel vehicles could achieve cost parity with conventional vehicles within a relatively short period if E85 remains cheaper than E20 and regular petrol.

The policy push is also linked to India's efforts to reduce crude oil imports. The country currently imports nearly 89% of its crude oil requirements.

According to the ministry, ethanol blending in petrol has increased from 1.5% in 2014 to 20% currently. The substitution of 302 lakh metric tonnes of crude oil has resulted in foreign exchange savings of about ₹1.84 lakh crore.

Ethanol demand for fuel could rise by an additional 400 crore litres from the current 1,100 crore litres if half of all new two-wheelers and four-wheelers become flex-fuel compliant.

How Will The E85 Ecosystem Be Expanded?

E85 has been identified as a monofuel standard for flex-fuel vehicles under BIS specifications.

Hero MotoCorp recently unveiled flex-fuel versions of the Splendor Plus and HF Deluxe motorcycles in the 100cc segment. These vehicles can operate across a broad ethanol-blending range, from E20 fuel to E100 fuel.

More than 5,200 ethanol dispensing stations are being planned across locations including the National Capital Region, Mumbai, Pune and Nagpur to strengthen the ecosystem for flex-fuel vehicles.

Although the flex-fuel motorcycles are priced around 4% higher than conventional versions, E85 fuel would be considerably cheaper than petrol-heavy alternatives.

How Does India's Ethanol Programme Compare With Global Standards?

India currently follows a nationwide E20 ethanol blending programme. The push comes as higher oil-price volatility linked to the US-Iran conflict has renewed focus on alternative fuels.

Globally, ethanol blending requirements vary across countries.

In North America, several US states including Minnesota, Missouri, Iowa, Montana, Kansas, Oregon, Louisiana, Washington and California require E10 gasoline. Canada mandates a minimum E5 blend, while Mexico requires E6 gasoline.

South American countries have adopted higher blending levels. Argentina mandates E12 gasoline, Brazil requires blends ranging from E18 to E27.5, Paraguay mandates E18-E24 blends, Colombia requires E10, Peru mandates E8, Uruguay uses E8.5-E10 blends and Costa Rica requires E7 fuel.

Elsewhere, Jamaica and Malawi mandate E10 blends, while Zimbabwe requires E20. Thailand and Vietnam have made E5 and E10 compulsory, with Vietnam also requiring E20 fuel. Finland and Sweden mandate E5 and E10 blends.

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Several European countries follow a mixed approach. France and Germany offer E5 and E10 as optional fuels, while Ireland and Romania mandate E4 blends. The Netherlands offers E5, E10 and E15 options, while Austria and Denmark also allow ethanol-blended fuels as a consumer choice.

According to Minister Hardeep Singh Puri, the launch is an important milestone in India's efforts to improve energy security, reduce emissions and lower dependence on imported crude oil.

Sources:

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