500 Fuel Stations to Offer E85 Petrol by End-2026 as India Pushes Flex-Fuel Adoption

India is set to accelerate its transition towards cleaner and more affordable transportation fuels, with the government planning to make E85 fuel available at 500 petrol stations by the end of 2026. The announcement was made by Union Petroleum and Natural Gas Minister Hardeep Singh Puri during the launch of Maruti Suzuki's first flex-fuel vehicle.

E85 is a fuel blend containing 85% ethanol and 15% petrol and is designed for use in flex-fuel vehicles (FFVs). The move is expected to support India's energy security goals, reduce crude oil imports, and boost domestic ethanol demand.

E85 Fuel Rollout to Begin in Major Cities

According to the minister, the initial phase will see E85 dispensing facilities introduced at around 50-100 fuel stations across the Delhi-NCR, Mumbai, Pune, and Nagpur corridors.

The network is expected to expand rapidly, reaching 500 outlets by December 2026 and approximately 5,000 fuel stations across major cities by the end of next year.

The rollout follows the Bureau of Indian Standards' recognition of E85 as a monofuel standard for flex-fuel vehicles, providing a regulatory framework for wider adoption across the country.

Lower Fuel Costs Could Drive Flex-Fuel Vehicle Adoption

A key factor behind the government's push is the expected cost advantage of E85 over conventional petrol. Hardeep Singh Puri recently stated that E85 would be priced significantly lower than regular petrol, making it financially attractive for consumers.

The minister noted that lower fuel prices could help vehicle owners recover any additional cost associated with flex-fuel vehicles within a relatively short period. As a result, affordability is expected to play a crucial role in encouraging consumers to switch to flex-fuel technology.

Reducing Oil Imports and Boosting Ethanol Demand

India currently imports nearly 89% of its crude oil requirements, exposing the economy to global price volatility and geopolitical risks.

The government has already increased ethanol blending in petrol from 1.5% in 2014 to 20% today, helping save an estimated ₹1.84 lakh crore in foreign exchange by reducing crude oil imports. Officials estimate that if half of all new two-wheelers and four-wheelers become flex-fuel compliant, ethanol demand could rise by an additional 400 crore litres annually.

Conclusion

The planned expansion of E85 fuel infrastructure marks a significant step in India's clean energy transition. With lower fuel costs, growing flex-fuel vehicle availability, and reduced reliance on imported crude oil, the initiative could reshape the country's transportation fuel ecosystem in the coming years.

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