One of the major discussions on the internet over the last couple of weeks has been the rising petrol prices. Along with the price hike, we have also been getting reports that authorities are considering alternative options, such as increasing the ethanol blend. The government is now working on preparing a policy framework to support the rollout of E85 fuel in India. Now, we have an official announcement from Indian Oil Corporation stating that E85 fuel will be cheaper than regular petrol.
Indian Oil today released an image on its X profile promoting the upcoming E85 fuel. The image was posted with the caption: “Introducing E85 – a fuel that brings together sustainability, affordability, and self-reliance. 85% Ethanol-Blended Petrol, Up to 61% lower greenhouse gas emissions*, More economical than petrol, 100% Aatmanirbhar fuel, Supports higher farmer income, Designed for Flex Fuel Vehicles.
A greener drive. A stronger India.”
Union Petroleum and Natural Gas Minister Hardeep Singh Puri had also confirmed earlier today that the ethanol-blended fuel will be priced significantly below regular petrol. E85 fuel is only suitable for compatible vehicles.
As part of the rollout, the government has already started planning to expand the availability of E85 fuel. Currently, the plan is to set up 50–100 E85 dispensing stations across the Delhi-NCR and Mumbai–Pune–Nagpur corridors before increasing the network to around 500 stations by December this year. The longer-term target is approximately 5,000 E85 dispensing stations across major Indian cities by the end of 2027.
Many brands, including Maruti Suzuki, have already started working on this technology. Not just car manufacturers, but two-wheeler brands like Hero also have flex-fuel models now. Maruti recently showcased the WagonR Flex Fuel version, which supports E85 fuel. To make the car compatible, the brand upgraded the fuel injectors and fuel pumps, added new fuel lines, installed a newly calibrated ECU, and included an ethanol sensor to detect the level of ethanol in the fuel.
While the image states that the price of E85 will be lower than that of regular petrol, it does not mention exact figures. The reason why E85 is expected to be cheaper is simply because of its composition. It contains 85 percent ethanol and 15 percent petrol.
E85 fuel, like E20, is expected to reduce engine performance and fuel efficiency compared to regular petrol. Naturally, consumers are unlikely to pay more for a fuel that is not as efficient as conventional petrol. In order to encourage manufacturers to develop flex-fuel vehicles and customers to adopt them, pricing E85 lower than petrol is absolutely necessary. It is expected to be priced at least 30 percent lower than regular petrol.
While oil companies will dispense E85 fuel through their fuel stations, the existing fuel options are likely to continue alongside it. We expect petrol pumps to offer both E85 and E20 fuels from the same station. However, the pumps will have separate storage tanks for each type of fuel.
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