Overview
- The Centre launched E85 on June 5 at 48 public-sector oil marketing company outlets as the first step in a phased national rollout.
- E85 is a high-ethanol blend of roughly 80–85% ethanol and 14–19% petrol that the government has priced about ₹20 per litre below conventional petrol at launch.
- Officials say E85 is meant exclusively for specially designed flex‑fuel vehicles and that using it in ordinary petrol or E20‑compatible cars can harm fuel systems and engines.
- The government plans to expand dispensing to about 500 outlets by December 2026 and roughly 5,000 by December 2027, while automakers have begun offering or previewing flex‑fuel models.
- Analysts and NITI Aayog warn that large-scale ethanol growth, especially from sugarcane, raises water‑use and feedstock risks and recommend diversifying sources even as the policy aims to boost farmer incomes and cut import bills.