Forget petrol! India plans shift to E85 fuel as government prepares new rules

Amid rising geopolitical tensions in West Asia and soaring global oil prices, India is preparing for a major and transformative shift in its fuel strategy. While the country has so far focused on petrol blended with 20% ethanol (E20), the government is now working on a draft policy to introduce E85 fuel.

This change would significantly increase the share of ethanol in fuel, reducing reliance on petrol. Reports suggest that the government may soon announce regulations for E85 fuel, with internal discussions already completed and initial testing showing positive results.

India currently imports nearly 90% of its oil requirements, placing a heavy burden on the economy. With ongoing conflicts in the Middle East worsening the oil situation, ethanol blending is being seen as a viable alternative. Prime Minister Narendra Modi has previously noted that ethanol blending in petrol has increased from just 1–2% a decade ago to around 20% today. This shift has helped reduce crude oil imports by approximately 45 million barrels annually.

Ethanol, which is produced from crops like sugarcane, maize, and grains, is a renewable fuel. It not only helps reduce pollution but also benefits farmers by creating additional demand for agricultural produce.

However, E85 fuel cannot be used in regular vehicles. It requires specially designed flex-fuel vehicles (FFVs). Using high-ethanol fuel in standard engines could damage components and reduce performance. This is why Union Minister Nitin Gadkari has been urging automobile manufacturers to develop flex-fuel engine technology.

To implement this shift, fuel stations will also need upgrades, including dedicated infrastructure, nozzles, and storage systems for E85.

In the coming years, E85 fuel could bring a significant transformation to India’s automobile and energy sectors, helping reduce dependence on imported oil.