Union Petroleum Minister Hardeep Singh Puri has confirmed that E85 fuel will be priced around ₹20 per litre below E20 petrol, as reported by CNN-News18. Speaking to the channel, Puri said the proposed pricing aims to benefit consumers while advancing India's clean fuel and energy security goals. The minister emphasized that E85 fuel contains up to 85% ethanol and can only be used in vehicles engineered to run on high ethanol blends. This pricing strategy represents a significant cost advantage for consumers adopting flex-fuel vehicles, with the minister stating the proposal is intended to lower fuel costs while accelerating India's ethanol blending programme.
Union Petroleum Minister Hardeep Singh Puri has dismissed the raging controversy around E20 ethanol-blended petrol as 'manufactured', arguing that the backlash surfaced only after India launched E85 flex-fuel vehicles on 5 June. Speaking to NDTV's Gaurie Dwivedi, Puri pointed out that E20 has been in the market for close to two years and E15 for three-and-a-half years before that, asking pointedly: 'Why does a controversy take place now?' He linked the timing to the E85 launch by Hero Motors, Suzuki and Toyota, saying: 'Someone must have thought that if E85 takes off in India... let's cast a doubt.' The minister drew a parallel with the earlier LPG shortage row, which he said also turned out to be overstated, stating: 'We not only survived it, but we did rather well out of it.'
On technical concerns, Puri acknowledged some loss in mileage, saying: 'Ethanol does result in some percentage of less mileage,' while noting the effect depends on 'driving habits, the kind of vehicle you are using, the kind of speed with which you are going.' Regarding older vehicles needing part replacements, he said a gasket due at 50,000 km 'you can probably have to look at it at ₹30,000,' but maintained this did not amount to a widespread defect. Citing Hero Motors having serviced 1.5 crore vehicles using E20, Puri said: 'Not a single complaint.' As reported by The Times of India, automobiles manufactured between 2012 and March 2023 were designed to run on fuel containing up to 10% ethanol, while vehicles produced before April 2025 are not fully compatible with E20 blends. The minister has now dismissed concerns that ethanol-blended petrol damages engines, describing such claims as 'misrepresentation'.
As reported by The Times of India, only about 48 fuel stations across the country currently dispense E85, with limited demand. The fuel is priced at ₹82.12 per litre compared to ₹102.12 per litre for conventional petrol in Delhi. According to a report by the Council on Energy, Environment and Water (CEEW), petrol is currently 2-14% cheaper than E100, with ethanol having lower energy content than petrol, meaning vehicles require more fuel to travel the same distance. The effective operating cost of ethanol is estimated to be 15-25% higher than petrol. Oil marketing companies attribute the weak response to E85 largely to the narrow price difference between E85 and conventional petrol. A report from the CEEW suggests that for ethanol to be more economical than petrol, its price would need to be around ₹52-63 per litre, a figure significantly below the production cost of any commercially viable feedstock.
According to The Times of India, last month, Road Transport and Highways Minister Nitin Gadkari approved regulations permitting E100 fuel use. Under the proposed roadmap, the government aims to establish around 500 flex-fuel stations by December and expand the network to nearly 5,000 outlets across major cities by the end of 2027. However, implementation has been slow, with only about 48 fuel stations currently dispensing E85 and demand remaining limited. As reported by NDTV, Puri rejected demands for separate fuel grades at retail outlets, arguing infrastructure cannot support it: 'You can't mix E20 and E15... so why do you want a choice?' He said existing options already cover consumer needs, listing 'petrol, diesel... CNG and now increasingly... green hydrogen.' The minister said expanding E85 availability will require the development of new retail infrastructure capable of dispensing the blend. Puri also confirmed that E25 petrol is still under testing and has not yet been rolled out commercially.
