India To Launch E85 Fuel Tomorrow In Push For Flex-Fuel Mobility

(MENAFN- Live Mint) India's oil marketing companies will begin rolling out E85 fuel-an 80-85% ethanol-blended variant of petrol-on Friday, marking a new phase in the push towards flex-fuel mobility.

Indian Oil Corp. Ltd. said the first phase of the E85 rollout will cover about 50 retail outlets across Delhi-NCR, Mumbai, Pune and Nagpur.“Indian Oil, along with other oil marketing companies, is set to launch E85, an ethanol-blended petrol developed for use in flex fuel vehicles (FFVs), on the occasion of World Environment Day,” the oil retailer said in a statement on Thursday.

Mint earlier reported that the Centre is preparing a broader policy push to enable adoption of flex-fuel vehicles that can run on ethanol blends of up to E85 petrol.

“E85, containing 80-85% ethanol and 15-20% motor gasoline, marks an important milestone in India's ethanol adoption journey. The initiative supports Aatmanirbhar Bharat, promotes cleaner mobility, strengthens the biofuel ecosystem, benefits. farmers, and offers consumers a more sustainable fuel option,” the Indian Oil statement read.

The launch ceremony will be attended by the Minister of Petroleum & Natural Gas, along with the Secretary, MoP&NG, senior officials from the ministry, and top executives of the oil marketing companies.

The move comes as automakers including Maruti Suzuki India Ltd. and Hero MotoCorp Ltd. have introduced flex-fuel variants of their best-selling WagonR and Splendor vehicles.

Reducing oil dependence

The push for flex-fuel vehicles is gaining momentum as India seeks to cut its dependence on imported crude oil. The country imports nearly 90% of its oil requirement, worth more than $120 billion annually-much of it sourced from West Asia through the Strait of Hormuz, which is effectively closed due to the Iran war. Global crude oil prices have remained volatile amid the conflict, briefly crossing $100 per barrel before easing after a ceasefire, though risks of another spike persist.

Such volatility poses a fiscal risk for India: a $1 per barrel increase sustained over a year would add about ₹18,000 crore to the crude oil import bill. India imported crude oil worth ₹10.92 trillion in FY26, nearly 10% lower than ₹11.61 trillion in the previous fiscal.

With transport accounting for a large share of petrol demand, reducing fossil fuel dependence in mobility is seen as central to the strategy.

Brazil is often cited as a successful example of flex-fuel adoption, introduced in 2003. Today, more than 90% of cars and two-wheelers there can run on ethanol, petrol, or blended fuels, supported by a strong sugarcane-based ethanol ecosystem.

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