India plans to introduce E85 fuel with 85% ethanol, aiming to reduce crude oil imports, boost farmer income, and promote cleaner energy through flex-fuel vehicles and new draft regulations.
Published: April 21, 2026 5:02 PM IST
The government is likely to issue draft rules for selling E85 fuel that has the highest ethanol blend in petrol across India shortly. This means there will be a complete departure from traditional petrol fuel to ethanol-blended fuel grades.
What is E85 Fuel?
Fuel with an ethanol blend of 85: 15 will be referred to as E85 fuel. Presently, India sells E20 fuel with an ethanol blend of 20 percent; however, with the introduction of E85 fuel, it will be introduced as a separate fuel grade.
“Draft regulations for the rollout of E85 fuel are likely to be issued soon as initial testing of the fuel has been completed and a consensus has been reached among stakeholders,” officials were quoted as saying by The Economic Times.
Why does the Government wants to sell E85 Fuel?
The Centre wants India to move towards E85 fuel so that it can cut down its imports of crude oil. Union Minister Nitin Gadkari has long advocated ethanol blending.
Benefits of ethanol-blended fuel include less fuel imports, reduced dependence on foreign countries for energy requirements, reduction in carbon emissions, and better income for farmers who grow crops like sugarcane and maize.
Last month, it was reported that the government wants India to move towards ethanol fuel due to the rising volatility of crude oil prices.
Flex-Fuel Vehicles to become mainstream?
Flex-fuel vehicles (FFVs) are those vehicles whose engine can run on more than one blend of ethanol, like E20, E85, and even higher ethanol blends.
For example, if a car manufacturer introduces an FFV car in the Indian market that can run on E85 fuel or higher ethanol blends, then the Centre will come out with new draft regulations that’ll have conformity testing and other norms.
Ethanol-fuelled engines will require tweaking to become E85-compatible, however, officials added that such vehicles will become mainstream in another two to three years.
Drivers may face reduced mileage if the country starts selling ethanol-blended fuels. The government will also need to ramp up infrastructure and petrol pumps that can distribute ethanol-blended fuel in large quantities.
Even industry stakeholders have asked the Centre to frame policies that will allow quicker adoption of ethanol fuel. India Mandates sale of E20 fuel will start selling E20 fuel across the country from April 2026.
Ethanol Fuel Mandate – What’s next?
If India rolls out E85 fuel or fuel with higher ethanol-blended fuel mandates across the country, it will significantly help reduce India’s crude oil imports. India currently imports about 85 percent of its crude oil requirements from different parts of the world. India will soon come out with draft rules for E85 fuel that can run on 85 percent ethanol.
