The Centre is preparing to introduce E85 fuel, priced around Rs 20 per litre below E20 petrol, for use only in specially engineered flex-fuel vehicles (FFVs), Petroleum Minister Hardeep Singh Puri said.
Speaking to CNN-News18, Puri said the proposal is intended to lower fuel costs for consumers while accelerating India's ethanol blending programme.
E85 fuel contains up to 85% ethanol and can only be used in vehicles engineered to run on high ethanol blends.
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The minister dismissed concerns that ethanol-blended petrol damages engines, describing such claims as "misrepresentation".
He said vehicle manufacturers have not reported any widespread mechanical issues linked to E20 fuel, citing industry feedback that millions of vehicles have been serviced without evidence of ethanol-related damage.
Puri also said earlier concerns surrounding warranty coverage and insurance for ethanol-compatible vehicles have now been addressed.
While he acknowledged that ethanol has a lower calorific value than petrol, which may result in a slight reduction in fuel efficiency, he argued that the broader economic and environmental benefits outweigh the trade-off.
According to the minister, the ethanol blending programme has helped reduce India's dependence on imported crude oil, easing pressure on fuel prices while supporting domestic agriculture through higher demand for ethanol feedstock.
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He said the initiative aligns with the government's Atmanirbhar Bharat vision by strengthening energy security and promoting cleaner fuels.
Puri added that E25 petrol is still under testing and clarified that it has not yet been rolled out commercially.
He also reiterated his support for the wider transition towards electric vehicles alongside the country's biofuel strategy.
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