Union Petroleum Minister Hardeep Singh Puri has announced that E85 fuel will be priced around Rs 20 cheaper per litre than E20 for flex-fuel vehicles.
The minister has also dismissed reports of engine damage linked to E20 petrol, calling such claims a misrepresentation.
The Indian government has taken its ethanol blending programme a step further, with Union Petroleum and Natural Gas Minister Hardeep Singh Puri confirming that E85 fuel will soon be available at a noticeably lower price than E20 petrol.
Speaking at a public event, Puri stated that E85, a blend containing up to 85 per cent ethanol, would be priced approximately Rs 20 per litre cheaper than E20, making it a genuinely attractive option for owners of flex-fuel vehicles.
This pricing decision appears to be a deliberate strategy on the government's part. Ethanol carries a lower calorific value than petrol, meaning vehicles typically draw slightly less energy from it per litre.
By pricing E85 well below E20, the ministry hopes to offset this difference and make the switch financially sensible for consumers who own or plan to buy flex-fuel vehicles.
Minister Rejects Concerns Over E20 Petrol
A significant portion of Puri's address focused on countering criticism of the existing E20 fuel, which has already become the standard petrol blend across much of the country. He firmly rejected suggestions that E20 has led to widespread engine problems, describing such reports as an unfair misrepresentation of the actual situation on the ground.
According to the minister, extensive testing carried out in coordination with automobile manufacturers has not turned up any evidence of systemic damage caused by E20 fuel, even in older vehicles that were not originally designed with higher ethanol blends in mind. He further noted that leading car makers have not flagged any meaningful pattern of engine trouble tied to the fuel. Questions around whether using E20 might affect vehicle warranties or insurance cover have also been addressed and clarified, according to Puri, easing a common worry among everyday motorists.
Ethanol And Electric Vehicles Seen As Complementary
Puri used the opportunity to reiterate the broader logic behind India's biofuel strategy. He described the ethanol blending programme as a central part of the country's energy security plan, one that reduces reliance on imported crude oil while simultaneously creating fresh demand for agricultural produce used in ethanol production, a development he framed as directly beneficial to Indian farmers.
On the subject of the government's longer-term roadmap, the minister clarified that E25 petrol remains at an experimental stage for now, and he cautioned against premature speculation regarding any further increase in ethanol blending levels.
Importantly, Puri did not position ethanol as a rival to electric mobility. Instead, he described biofuels and electric vehicles as complementary paths toward the same goal, both expected to play a meaningful role in helping India move toward cleaner and more sustainable transport while lowering overall carbon emissions.
What This Means For Flex-Fuel Owners
For consumers who already own, or are considering, a flex-fuel vehicle, the announcement offers a clear financial incentive. With E85 priced meaningfully below E20, running costs for FFV owners could drop noticeably once the fuel becomes more widely available at retail outlets across the country.
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