India launches E85 ethanol fuel, priced ₹20 cheaper than regular petrol

On World Environment Day (5 June 2026) the Indian government inaugurated its first E‑85 ethanol‑petrol dispensing station in Delhi. The new fuel, containing 80‑85 % ethanol, is sold at about ₹82.12 per litre, roughly ₹20 less than the prevailing E‑20 petrol price of around ₹102 per litre.

E‑85 can be used only in flex‑fuel vehicles. In India the only approved models are the Maruti Suzuki WagonR Flex‑Fuel car and Hero MotoCorp’s Splendor+ and HF Deluxe Flex‑Fuel motorcycles. The programme aims to curb oil imports, cut greenhouse‑gas emissions and boost farmers’ income from ethanol production. The government plans to expand to 500 dispensing outlets by 2026 and about 5,000 by 2027, targeting a 26 % ethanol blend in gasoline by 2030‑31. The lower energy density of ethanol means a 25‑30 % drop in mileage, so the cost advantage depends on vehicle usage patterns.