India launches E85 fuel, aims for 5,000 outlets by 2027

India will launch E85 fuel, a blend containing 85% ethanol and 15% petrol, on World Environment Day, marking a significant step in the country's push for flex-fuel vehicles. The rollout will begin at an Indian Oil petrol pump on Pusa Road in Delhi, with an initial phase covering approximately 50 to 100 retail outlets across the Delhi-NCR, Mumbai, Pune, and Nagpur corridors.

Union Minister of Petroleum and Natural Gas Hardeep Singh Puri outlined an ambitious expansion plan, stating that the number of outlets dispensing E85 is expected to grow to 500 by December of this year and reach approximately 5,000 across major cities by the end of next year. The broader goal is to have about 500 petrol pumps across the initial four metropolitan regions dispensing the fuel by the end of 2026.

Officials said E85 will be priced significantly below conventional petrol, a factor described as critical for driving consumer adoption. Puri emphasized that consumer economics is the most important factor, noting studies suggest owners of flex-fuel vehicles can achieve cost parity with conventional vehicles within a short period if E85 remains cheaper than both E20 fuel and regular petrol. The...