India launches gasoline blended with 85% ethanol at lower price

Hero Motocorp

05/06/2026 16:06

    June 5 (Reuters) - India will start rolling out gasoline blended with 85% ethanol (E85) that will be about 20 rupees per litre cheaper than regular E20 fuel, Oil Minister Hardeep Singh Puri said on Friday.

    Indian automakers have started launching flex-fuel vehicles that are compatible with the higher ethanol variant.
  

E85 fuel will be cheaper than E20 due to its lower calorific value, Puri said. E20 sells for about 102 rupees ($1.07) per litre in New Delhi.
India plans to roll out E85 at 50 to 100 fuel stations in 2026, scaling up to around 5,000 outlets by 2027, he added.
E85 fuel is intended for flex-fuel vehicles, which can operate on gasoline blended with high amounts of ethanol.

        Puri said automakers and automobile industry associations are on board for the launch.
Automakers such as Maruti Suzuki MRTI.NS and Hero MotoCorp HROM.NS have rolled out flex-fuel compatible variants of their popular WagonR and Splendor models.
E85 fuel will help cut pollution and reduce the country's reliance on imported oil, Puri said. 
India, the world's third-largest oil importer and consumer, currently sells gasoline blended with 20% ethanol.
Earlier in April, India proposed allowing higher ethanol blends such as E85 and E100 under vehicle rules.
The move followed its 2025 achievement of 20% ethanol blending and aims to further reduce reliance on fuel imports.
The Indian government faced a backlash from motorists after the nationwide rollout, on fears that it may affect the performance of vehicles.

        Separately, India's oil secretary Neeraj Mittal on Friday said the government is working on a programme to boost compressed biogas production.


($1 = 94.9450 Indian rupees)

 (Reporting by Bipasha Dey in Bengaluru and Nidhi Verma in New Delhi; Editing by Sahal Muhammed)
 ((Bipasha.Dey@thomsonreuters.com;))