India starts selling fuel with 85% ethanol

India will start selling a fuel with a blend of 85% ethanol (E85) and 15% gasoline, which will be about 20 rupees per liter cheaper than E20, Petroleum Minister Hardeep Singh Puri said on Friday.

India plans to deploy E85 at 50 to 100 fuel stations by 2026, with expansion to about 5,000 outlets by 2027, he added.

Furthermore, the minister highlighted that E85 fuel will help reduce pollution and the country's dependence on imported oil, Puri said.

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India, the world's third largest oil importer and consumer, currently sells gasoline blended with 20% ethanol (E20).

Indian automakers have started launching flex-fuel vehicles that are compatible with a higher ethanol blend.

E85 fuel will be cheaper than E20 due to its lower calorific value, Puri explained.

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E20 sells for around 102 rupees ($1.07) per liter in New Delhi.

Puri said that automakers and automobile industry associations support the launch.

Car manufacturers such as Maruti Suzuki and Hero MotoCorp have launched flexible fuel compatible variants of their popular WagonR and Splendor models.

In early April, India proposed allowing higher ethanol blends such as E85 and E100 under vehicle rules.

The measure occurred after the country reached the target of 20% ethanol blending in 2025 and aims to further reduce dependence on fuel imports.

The Indian government faced a backlash from drivers following the countrywide rollout, with fears it could affect vehicle performance.

Separately, India's petroleum secretary Neeraj Mittal said on Friday that the government is working on a program to boost production of compressed biogas.

(Reporting by Bipasha Dey in Bengaluru and Nidhi Verma in New Delhi)

Source: CNN