E85 fuel arrives in Delhi: Why it’s cheaper than petrol, what’s the catch, and who can use it
The biggest feature of the launch is its price. According to reports, E85 fuel is sold at Rs 82.12 per liter in Delhi, making it Rs 20 cheaper than regular E20 petrol; which currently costs Rs 102.12 per litre. The price of premium XP95 petrol is even higher at Rs 109.24 per litre.
The first E85 fuel dispenser has been installed at the Indian Oil outlet on Pusa Road in New Delhi. Special branding was introduced to help consumers easily identify E85 pumps.
Why is E85 cheaper?
E85 fuel is a mixture of 85% ethanol and 15% gasoline. The government is promoting ethanol-based fuels to reduce India’s dependence on imported crude oil and promote cleaner transportation.
Because the energy content of ethanol is lower than gasoline, E85 is priced lower to make it attractive to consumers. The Rs 20 per liter price advantage over E20 petrol is intended to offset the lower fuel efficiency associated with ethanol-rich blends.
What is the catch?
The lower price comes with a trade-in. Ethanol contains roughly one-third less energy than gasoline; This means that E85-powered vehicles will likely consume more fuel to travel the same distance.
Industry estimates suggest that E85-compatible vehicles can deliver 25-35% lower mileage compared to similar vehicles running on E20 gasoline. As a result, actual savings at the fuel station may be partially offset by increased fuel consumption. Another limitation is vehicle compatibility. E85 is available only in specially designed flexible fuel vehicles and options remain extremely limited in India at present.
What vehicles can run on E85?
Only a few models currently on sale in India are certified to run on E85 fuel. These include:
* Hero Splendor+ Flex Fuel
* Hero HF Deluxe Flex Fuel
* Suzuki Gixxer SF 250 FFV
Hero MotoCorp recently entered the flex-fuel segment with its ethanol-compatible commuter motorcycles. Splendor+ Flex Fuel is priced at Rs 82,710 (ex-showroom Delhi), while HF Deluxe Flex Fuel is priced at Rs 72,792 (ex-showroom).
Suzuki’s Gixxer SF 250 FFV is priced at Rs 1.98 lakh (ex-showroom).
Meanwhile, Maruti Suzuki has showcased the flex-fuel version of the Wagon R many times, but the model is yet to be made available to consumers.
Expansion plans are underway
For now, E85 fuel will be available only at select Indian Oil outlets in Delhi-NCR and Maharashtra. However, the government has announced plans to rapidly expand the network.
According to Petroleum Minister Hardeep Singh Puri, around 500 ethanol distribution stations are expected to be operational across India by the end of 2026. This number is expected to increase to approximately 5,000 sales points by 2027.
The launch of E85 fuel is part of India’s broader biofuels strategy, which aims to reduce carbon emissions, increase energy security and promote cleaner fuel alternatives. While limited vehicle compatibility remains an issue, a lower pump price could help adoption as more flex-fuel vehicles enter the market in the coming years.
