India has taken another significant step towards cleaner and more self-reliant transportation with the launch of E85 fuel at 48 retail outlets operated by public sector oil marketing companies (OMCs) across the country. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri inaugurated the rollout at an Indian Oil fuel station in New Delhi on World Environment Day 2026.

The introduction of E85 fuel marks a new phase in India’s ethanol-blending programme. E85 is a high-ethanol fuel containing 80–85 per cent ethanol and 14–19 per cent petrol. It is designed specifically for flex-fuel vehicles (FFVs), which can run on a wide range of ethanol-petrol blends, from E20 to E100.

The government plans to expand the availability of E85 fuel rapidly. The network is expected to grow to 500 retail outlets by December 2026 and around 5,000 outlets by December 2027, creating a nationwide ecosystem for flex-fuel vehicles and helping increase the country’s overall ethanol blending levels in the coming years.

Speaking at the launch event, Puri said India has successfully balanced energy security, affordability and sustainability while maintaining stable fuel supplies for consumers. He highlighted that the country’s ethanol blending rate has risen from just 1.53 per cent in 2014 to 20 per cent today, achieving the target five years ahead of schedule.

According to the minister, the ethanol blending programme has helped India save more than ₹1.84 lakh crore in foreign exchange while reducing dependence on imported crude oil. He credited Indian farmers for playing a crucial role in this transition, describing them as contributors not only to food security but also to the nation’s energy security.

One of the key attractions of E85 fuel is its lower cost. The fuel is priced nearly ₹20 per litre cheaper than conventional petrol, making it an economical option for flex-fuel vehicle owners. In addition to financial savings, E85 can significantly reduce greenhouse gas emissions, with lifecycle emissions estimated to be around 61 per cent lower than those of conventional petrol vehicles.

The fuel also offers technical advantages. Ethanol’s higher octane rating improves engine performance and enables cleaner combustion, which can help reduce harmful emissions and improve urban air quality.

The minister noted that a large-scale shift towards flex-fuel vehicles could create substantial demand for domestically produced ethanol, generating additional income opportunities for farmers while reducing India’s fuel import bill. Such a transition could also contribute significantly to lowering carbon emissions.

Drawing parallels with Brazil, where flex-fuel technology has been widely adopted for decades, Puri said India is now moving beyond pilot projects and building a structured national flex-fuel ecosystem. He urged state governments to support the initiative through favourable taxation policies for both E85 fuel and flex-fuel vehicles.

Addressing concerns regarding ethanol-blended fuels, the minister clarified that E85 is intended only for specially designed flex-fuel vehicles and should not be used in conventional petrol vehicles. He also pointed out that since E20 fuel became the standard across the country, there have been no reported cases of engine failure linked to ethanol blending.

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The government believes flex-fuel vehicles can complement India’s clean mobility ambitions by offering a lower-cost alternative to electric vehicles while leveraging existing fuel infrastructure. As India continues its journey towards energy independence and lower carbon emissions, the launch of E85 fuel represents an important milestone in creating a more sustainable transportation sector.

With the rollout now underway, consumers using flex-fuel vehicles will gain access to a cleaner and more affordable fuel option, while the country moves closer to its goals of reducing oil imports, supporting farmers and building a greener future.

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