Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Saturday launched a new auto fuel – the E85 that contains 85% ethanol – in Delhi. It will be ₹20 cheaper than the E20 petrol per litre, reducing reliance on crude oil imports. The E85 fuel will be initially available at the Indian Oil outlet on Pusa Road. E85 to cost ₹82.12/liter, with separate branding The E85 fuel will cost ₹82.12 per litre in Delhi, cheaper by ₹20 than the regular E20 petrol in Delhi. To avoid any confusion for customers at petrol pumps, machines (dispensers) providing E85 fuel will have special branding and a clearly visible separate label. Govt to offer the fuel at 500 pumps this year IOC’s Pusa Road outlet becomes the country’s first petrol station to offer the fuel. Initially, the government plans to set up 50-100 E85 stations in the Delhi-NCR and Mumbai-Pune-Nagpur corridor. By the end of this year, the network is expected to grow to around 500, and by the end of 2027, their numbers are expected to reach 5,000 across all major cities. The government has also recently notified fuel standards with higher ethanol mix like E22, E25, E27 and E30. What’s special about E85 Flex Fuel Currently, fuel stations currently offer the E20 petrol, which is a mix of 20% ethanol and 80% petrol. The new E85 fuel contains up to 85% ethanol and 15% petrol. The government wants to move towards flex fuel like E100, or 100% ethanol, to reduce dependency on crude oil imports. Due to the Iran-US conflict that began on February 28, crude oil prices have risen from $70 to over $100 per barrel, increasing India’s import bill. Ethanol is made from agricultural products like sugarcane juice, corn, and rotten grains, which is why it costs less. This fuel can also help reduce carbon emissions. Can be used only in select vehicles E85 fuel cannot be used in regular petrol vehicles. For this, the vehicle’s engine must be specifically based on ‘flex-fuel’ technology. Currently, flex-fuel vehicles are not yet available in India. Reducing crude import is govt’s priority Due to the ongoing war between America and Iran, crude oil prices have crossed $100 per barrel. India imports about 90% of its oil requirements. Although the oil import bill in fiscal year 2026 has decreased to $123 billion from last year’s $137 billion, the government wants to reduce it further. PM Narendra Modi has also emphasised adopting alternative fuels in view of the energy crisis. Post navigation Investing in mutual funds:Learn from experts how to choose the right fund, how much to invest, and which mistakes to avoid
