- E85 fuel adoption is expected to surpass E20 due to its lower price point
- Government has not set production targets or mandated E85-compatible vehicles
- E85 fuel launched at about Rs 20 cheaper per litre than E20 fuel
E85, or petrol blended with 85% ethanol, will find greater adoption as compared to E20 due to its cheaper pricing point, according to Petroleum and Natural Gas Minister Hardeep Singh Puri.
Highlighting the significance of E85 fuel as a market-driven initiative, Puri on Friday said the government has neither set production targets nor mandated automobile manufacturers to roll out E85-compatible vehicles.
The transition is being propelled by industry participation, consumer demand, growing ecosystem readiness, besides its cheaper price, Puri noted, while speaking to NDTV Profit. The fuel was launched earlier on Friday, with officials noting that it will be cheaper by around Rs 20 per litre as compared to E20.
The expansion of E85 fuel is part of a broader exercise to promote cleaner and more affordable mobility options, Puri said, while noting that automakers themselves see significant potential in the segment and are increasingly introducing both two-wheeler and four-wheeler models capable of running on E85 fuel.
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Drawing a contrast with earlier ethanol-blending initiatives, the minister said fuel retailers had previously established dispensing infrastructure before vehicle manufacturers were ready with compatible models.
“This time, however, both the fuel supply ecosystem and the automobile industry are progressing in tandem,” he said.
According to Puri, the availability of E85 fuel is being aligned with the rollout of compatible vehicles.
He said, considering the growing interest in E85 fuel, the government plans to expand the network of dispensing stations from around 50 at present to 500 by the end of the year, a move aimed at boosting availability, improving accessibility and supporting wider adoption of the fuel.
The minister said the government will periodically review the progress of the initiative and assess market response as the ecosystem develops.
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