After E20, Indian Government Wants E85 Petrol: Draft Policy Ready
India completed the nationwide rollout of E20 (20% Ethanol-blended) petrol on April 1, 2026. The government now wants to move straight to E85- 85% Ethanol blended petrol. The push comes amidst rising geopolitical tensions and increasing vehicular pollution. The West Asia war has been adversely affecting fuel imports recently. India’s dependency on imported fuel is now forcing this strategy rethink.
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A senior government official reportedly told ET Auto that a draft notification allowing E85 fuel is ready. This is expected to be issued shortly. The official reportedly said “market consensus has already been achieved, even preliminary testing of vehicles for E85 has been done and a draft notification is coming shortly”.
The rollout will not be immediate, as E85 requires major changes at multiple levels.
Unlike E20, this higher blend cannot be used in standard petrol engines. It will require flex-fuel-compatible vehicles and separate dispensing infrastructure at fuel stations.
Engines designed for E85 can easily run on lower ethanol blends. However, the reverse is not true. Existing engines, especially older ones, may face performance issues, reduced efficiency, and long-term wear due to corrosion when exposed to high ethanol content.
The E85 push is rooted in two key concerns: energy security and environmental impact. India remains heavily dependent on crude oil imports. This makes the country vulnerable to global disruptions, especially during conflicts like the ongoing Israel-US-Iran war.
By increasing ethanol blending, India can reduce its reliance on imported oil and strengthen domestic energy independence. At the same time, ethanol blending helps cut vehicular emissions by facilitating cleaner combustion.
“E85 needs to be taken forward and there are multiple reasons for this. One, our dependence on imports for fuel makes us vulnerable and we must move to secure our energy needs. Two, policy must address vehicular pollution through a localised approach” the official told the publication.
A localised fuel strategy using agricultural feedstock is seen as a more sustainable solution.
E85 could be made mandatory in the coming years, though no specific date for the implementation has been arrived on yet.
India’s blending journey has been fast-paced. The 20% blending target was achieved ahead of the proposed timeline. It was originally set for 2030 but was achieved in 2025-26. Oil marketing companies (OMCs) gradually increased the Ethanol content over the years, reaching nearly 18 percent before the official E20 mandate was announced earlier this year. The proposed transition to E85 represents a significant leap.
Despite the optimism, moving to E85 will not be straightforward. The biggest challenge is vehicle compatibility. Most cars on Indian roads today are not designed to handle E85. Automakers will have to accelerate development and rollout of flex-fuel vehicles, aligning with these policy developments.
Fuel infrastructure is another hurdle. Petrol pumps will need separate storage and dispensing systems for E85. This will increase operational complexity.
Benefits of India’s transition to E20 fuel, according to reports, are already visible. Society of Indian Automobile Manufacturers (SIAM) estimates that 20 percent blending could generate around Rs 40,000 crore in payments to farmers and save approximately Rs 43,000 crore in foreign exchange. Plus, the program has also reduced carbon emissions significantly.
The idea of E85 petrol isn’t new. Countries like the United States and parts of Europe already have it on sale. France is currently the world leader in E85 adoption. As of late 2025, E85 fuel is available in roughly 42% if the total gas stations there, marketed as Superethanol-E85. Subsidies have played a big role behind its acceptance. India could potentially adopt a similar strategy to boost adoption. Interestingly, some countries that had initially adopted E85 have over time moved back to lower blends like E10.
Source: ET Auto