- Indian Oil is better prepared for E85 and E100 supply chain after E20 rollout experience
- E85 fuel available at 50 locations with phased OEM approach following E100 challenges
- Ethanol pricing aims to balance affordability, producer returns, and energy security goals
Indian Oil Corp. Chairman and Managing Director AS Sahney said the company is better prepared to manage the supply chain for E85 and E100 fuels, having gained experience from the E20 rollout.
Speaking at an event in Delhi, Sahney said the existing infrastructure can largely support the transition, with separate storage tanks and dispensing stations required. IOCL has started E85 availability at around 50 locations, while the company is taking a phased approach with OEMs after the earlier E100 rollout faced readiness challenges
Sahney noted that ethanol pricing must maintain a balance between keeping fuel affordable for consumers, ensuring fair returns for producers, safeguarding the company's commercial viability, and advancing India's energy security objectives.
The IOCL chief said these factors have been central to the success of the government's E20 ethanol blending programme and will remain crucial for the expansion of higher ethanol blends such as E85.
He said the ethanol programme is driven by four core priorities — making fuel accessible for consumers, providing sustainable earnings for producers, ensuring operational viability for oil marketing companies, and lowering India's reliance on imported energy resources.
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According to Sahney, E85 ethanol fuel has been introduced at a lower price point to encourage adoption and make it attractive for consumers.
However, he clarified that the current pricing is a launch offer and could be adjusted in the future depending on market response and consumption levels.
“The pricing may be calibrated further as consumption increases,” Sahney said, adding that long-term sustainability of the programme would depend on ensuring economic viability across the entire value chain.
India has been steadily increasing ethanol blending in petrol as part of its strategy to cut crude oil imports, reduce emissions and provide additional income opportunities for farmers and ethanol producers.
The next phase of ethanol adoption, including fuels with higher blending levels, will require continued alignment between policy, pricing and supply capacity.
Sahney said maintaining this balance would be key for the success of future ethanol programmes while supporting India's transition towards greater energy independence.
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