Centre weighs 15-20% cheaper E100 fuel as India gears up for flex-fuel vehicle launch
India is finalising E100 fuel pricing at ₹82-87 per litre, about 15-20% below petrol, ahead of flex-fuel vehicle launches by major automakers. While supporting ethanol adoption and biofuel goals, the smaller price advantage compared with Brazil may limit consumer switching incentives.
New Delhi: The Centre is finalising the retail price of E100 fuel as India prepares for the commercial rollout of flex-fuel vehicles, with officials indicating that the fuel may be priced 15-20 per cent lower than regular petrol.
According to sources familiar with the discussions, E100 could be sold at around ₹82-87 per litre, compared with Delhi’s current petrol price of ₹102.12 per litre. The pricing decision is expected to play a crucial role in shaping consumer adoption of flex-fuel vehicles, which can operate on petrol, ethanol or a combination of both.
The move comes as major domestic manufacturers, including Maruti Suzuki and Hero MotoCorp, prepare to introduce flex-fuel models following recent regulatory changes permitting the use of high-ethanol fuels, Financial Express reported.
However, the proposed price advantage is considerably lower than that available in Brazil, the world’s largest and most established flex-fuel vehicle market. There, hydrous ethanol is currently sold at an average of about BRL 4.27 (around ₹81) per litre, while petrol costs about BRL 6.62 (around ₹126) per litre, giving ethanol a significant price advantage.
The wider price gap in Brazil has encouraged motorists to use ethanol despite its lower energy content. Because ethanol delivers fewer kilometres per litre than petrol, Brazilian consumers generally follow the “70 per cent rule,” under which ethanol becomes economically attractive only when it is priced at 70 per cent or less of petrol.
At current prices, Brazilian ethanol remains well below that threshold. In contrast, India’s proposed E100 pricing would place ethanol at roughly 80-85 per cent of petrol prices, potentially reducing the financial incentive for motorists to switch fuels.
The pricing decision gains importance as India moves closer to introducing flex-fuel mobility on a larger scale. Last month, the Ministry of Road Transport and Highways amended vehicle regulations to formally include high-ethanol fuels such as E85 and E100 within the country’s vehicle framework.
The amendment has cleared the way for automakers to launch vehicles capable of running on a range of ethanol-petrol blends, including nearly pure ethanol.
E100 fuel was first introduced by Indian Oil Corporation on a pilot basis in 2024 through 183 fuel stations across multiple states. The network has since expanded to around 400 outlets. However, the absence of compatible vehicles and a defined retail pricing structure has limited fuel sales so far.
Industry executives believe the final E100 price will be a key factor in determining the success of flex-fuel vehicles in India, with fuel cost savings expected to influence consumer buying decisions as the country pushes ahead with its ethanol blending and biofuel goals.
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Source : ChiniMandi
