Autocar India

E85 fuel to be priced below petrol, rollout moves closer

The government is examining policy support for higher ethanol blends as manufacturers begin introducing flex-fuel vehicles.
2 min read4 Jun '26
Dhruv DhakaDhruv Dhaka
32K+ views
E85

The government is preparing a policy framework to support the rollout of E85 fuel in India, with Union Petroleum and Natural Gas Minister Hardeep Singh Puri saying the ethanol-blended fuel will be priced significantly below regular petrol. E85 fuel has 85 percent ethanol content. 

“E85 fuel will be used for vehicles compliant with E85. It will be substantially cheaper than normal fuel,” Puri said at the launch of Hero MotoCorp’s flex-fuel versions of the Splendor+ and HF Deluxe motorcycles.

The minister added that the government is actively examining supportive policies to accelerate affordable adoption of E85 fuel and indicated that further details on pricing could be announced soon.

  1. 500 E85 dispensing stations targeted by December 2026
  2. Maruti Suzuki Wagon R becomes India’s first flex-fuel passenger vehicle
  3. Government evaluating up to 15 percent isobutanol blending in diesel

E85 rollout gathers pace

E85, a blend containing up to 85 percent ethanol and 15 percent petrol, can only be used in flex-fuel vehicles designed for higher ethanol blends. The government is expected to notify draft rules for E85 shortly, while the Ministry of Road Transport and Highways has already proposed regulatory changes to enable wider use of fuels such as E85, E100, biodiesel and hydrogen-CNG blends.

Fuel availability is also set to expand rapidly. The government plans to begin with 50-100 E85 dispensing stations across the Delhi-NCR and Mumbai-Pune-Nagpur corridors, before increasing the network to around 500 stations by December this year. The longer-term target is approximately 5,000 E85 dispensing stations across major Indian cities by the end of 2027.

Flex-fuel vehicles begin arriving

E85 fuel to be priced below petrol, rollout moves closer

The push comes as manufacturers start introducing E85-compatible vehicles. Hero MotoCorp recently launched flex-fuel versions of the Splendor+ and HF Deluxe motorcycles that can run on ethanol blends ranging from E20 to E85.

Maruti Suzuki has also showcased the Wagon R Flex Fuel, making it India’s first flex-fuel car. Based on the company’s 1.2-litre K12N petrol engine, the Wagon R can operate on ethanol blends from E20 to E85. For now, it will be offered only to fleet operators and cab aggregators such as Ola and Uber.

Diesel blends and hydrogen also under evaluation

E85 fuel to be priced below petrol, rollout moves closer

Speaking at the unveiling of the Wagon R Flex Fuel, Union Road Transport and Highways Minister Nitin Gadkari said the government is considering allowing up to 15 percent isobutanol blending in diesel as part of its broader alternative-fuel programme.

Isobutanol is a biofuel produced from ethanol. Compared to ethanol, it contains more energy and is less corrosive, making it better suited for blending with diesel. Preliminary studies suggest it could be used in existing diesel engines with limited modifications, although further testing and regulatory approvals are still required.

Gadkari also said hydrogen remains an important part of India’s long-term clean mobility plans. Pilot projects involving hydrogen-powered buses are underway, with the government continuing to evaluate the fuel’s potential for commercial transport applications.

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