What is E85 fuel? Why it costs less than petrol and who can use it? Check price, mileage, benefits and more

India has dramatically escalated its clean energy ambitions with the launch of E85 fuel in Delhi, priced at a significant Rs 82.12 per litre—a substantial Rs 20 to Rs 28 cheaper than conventional petrol. This groundbreaking move, unveiled on World Environment Day, marks a pivotal shift for the nation's automotive sector and positions E85 as a high-octane, domestically produced alternative for compatible flex-fuel vehicles, signaling a decisive push towards a more self-reliant energy landscape. The introduction of E85, a blend of 80-85% ethanol and 15-20% petrol, is a direct acceleration of India's robust ethanol blending program, which successfully achieved its E20 target five years ahead of schedule in December 2025. This aggressive pivot aims to drastically cut India's nearly 89% reliance on crude oil imports, bolster energy security, and significantly reduce greenhouse gas emissions by up to 61% compared to traditional fossil fuels. The initiative also promises a direct economic boon for Indian farmers, transforming them into 'Urjadatas' (energy providers) through increased demand for ethanol feedstocks. While the price advantage is compelling, E85's adoption hinges on the rollout of a widespread dispensing infrastructure—planned to grow from an initial 48-100 stations to 5,000 by late 2027—and the wider availability of flex-fuel vehicles. Only a handful of models are currently compatible, necessitating a rapid expansion of FFV offerings from automakers. The inherent trade-off of potentially lower fuel efficiency with higher ethanol blends will be a key factor for consumer acceptance, as the government pushes for an ecosystem where domestic biofuel reshape India's transportation future.