Government plans 5,000 E85 stations by 2027 as flex-fuel vehicles begin entering the Indian market.
The use of alternate fuels became more feasible in India on June 5, 2026, with the opening of the country’s very first E85 fuel station in the capital city of Delhi. Union Petroleum & Natural Gas Minister Hardeep Singh Puri formally inaugurated the dispensing station located on Pusa Road.
E85 fuel will now cost Rs 82.12 per litre in Delhi, which is exactly Rs 20 lower than the retail price of regular E20 petrol, currently priced at Rs 102.12 per litre.
What Exactly Is E85 Fuel?
E85 fuel refers to a fuel mixture comprising up to 85 percent ethanol and 15 percent gasoline. This fuel is meant for flex-fuel vehicles, which are capable of adjusting engine performance based on the level of ethanol present in the fuel.
The adoption of E85 is part of the Indian government’s effort to reduce India’s reliance on imported crude oil. Increased use of E85 would also promote agriculture in the country, as higher ethanol consumption would boost demand for raw materials used in ethanol production.
To help consumers differentiate between the two fuels, E85 fuel dispensers will be branded differently from regular fuel dispensers.
Advantage Of E85 Over Gasoline Reduced By Lower Efficiency
Although the cost savings associated with E85 over petrol appear impressive at first glance, some critics argue that the benefit may not be as significant as perceived.
Ethanol has a lower calorific value per unit compared to petrol and therefore results in higher fuel consumption. The fuel efficiency of vehicles running on E85 is about 25 to 35 percent lower compared to vehicles using E20 fuel.
Furthermore, flex-fuel vehicles tend to be more expensive than conventional petrol vehicles. For instance, the recently launched E85-ready Hero Splendor+ costs an additional Rs 6,000 compared to the standard model.
Moreover, when compared with other parts of the world, the price difference between ethanol and regular petrol is significantly higher in Brazil, one of the largest consumers of ethanol fuel.
Plans For Expanding Infrastructure
The new E85 dispensing facility in Delhi is just the beginning of a wider expansion plan. There are plans to establish 50 to 100 such facilities across the Delhi-NCR region, as well as along the Mumbai–Pune–Nagpur corridor, in the coming months.
By the end of 2026, around 500 stations offering E85 fuel are expected to be established across the country. In the long run, the aim is to create nearly 5,000 E85 dispensing stations across major Indian cities by December 2027.
More Vehicles With Flex-Fuel Compatibility
There have been very few flex-fuel vehicles operating in India so far. For instance, the production-spec Maruti Suzuki Wagon R Flex Fuel has currently been reserved for commercial purposes. However, Hero MotoCorp recently unveiled its two flex-fuel motorcycles — the Splendor+ and HF Deluxe — which are scheduled to launch in July.
Other manufacturers are also looking to enter the segment soon. Tata Motors has stated that its first flex-fuel car will likely be the Tata Punch, expected before the end of this year, while Toyota has showcased flex-fuel versions of the Toyota Innova Hycross multiple times.
With the establishment of fuel infrastructure now underway, India’s flex-fuel landscape appears to be shifting from experimentation to real-world implementation.
