Nitin Gadkari and Hardeep Singh Puri bat for ethanol-blended fuel, hint at affordable E85 petrol
India is pushing E85 fuel adoption beyond nationwide E20, with flex-fuel vehicles launched by Hero MotoCorp and policy support under review. Ministers Hardeep Singh Puri and Nitin Gadkari said cheaper E85, lower taxes, and wider ethanol blends could boost demand.
The Indian government is increasingly focusing on a higher mix of ethanol in petrol. With the E20 petrol available across the country, the government is now emphasising increasing the ethanol blending to 85%. The automakers, too, have started working on their respective products to comply with the E85 petrol, which will have 85% ethanol blended with 15% petrol, in comparison to current E20 petrol, where 20% ethanol is mixed with 80% petrol.
Hero MotoCorp has just launched the flex fuel variants of the Splendor+ and HF Deluxe, which come with E85-compatible engines. During the launch event, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said that the E85 petrol will be substantially cheaper than the current E20 petrol. He said that the government is actively examining a supportive policy for accelerated, affordable adoption of E85 fuel. The minister also said even if 1% of E85 is adopted in the 2026-27 supply year, four crore litres of ethanol demand will be generated.
During the same event, Nitin Gadkari, Union Minister for Road Transport and Highways, said that he has raised the issue of higher GST, 18% in this case, on fuel having ethanol blending of more than 20% in petrol. “The finance minister assured me that she will discuss this issue of higher taxes on E30 and above with state governments in the GST Council meeting,” Gadkari said. The current GST rate on E20 fuel is 5%.
Government advocates for higher ethanol blends
The Ministry of Road Transport and Highways has proposed amendments to vehicle emission rules to widen the scope for higher ethanol blends and alternative fuels, paving the way for flex-fuel and pure biofuel vehicles across vehicle categories.
The draft changes to the Central Motor Vehicles Rules, 1989 aim to provide for wider use of fuels, such as E85 (a blend of 85 per cent ethanol with petrol) and E100(which would allow vehicles to run on nearly pure ethanol), as well as B100 biodiesel and hydrogen-CNG combinations.
India has already achieved 20 per cent blending of ethanol (produced from biomass like sugarcane, corn or rice) with petrol to create a cleaner-burning fuel, reducing reliance on imported crude oil and cutting carbon emissions.
Interestingly, just a few days ago, we reported that the Indian government has advised the state-run oil marketing companies, as well as privately-owned oil companies, to start working on dispensing infrastructure for E20, E22, E25 and E30 fuels. This means the customers can choose the ethanol content depending on their vehicle compatibility. Besides that, the comment from Puri stating that E85 fuel will be significantly cheaper than the current E20 also indicates that the government is strongly advocating for higher ethanol blends in petrol.
Gadkari claims ethanol is not an inferior fuel
Since the rollout of E20 as the only available normal petrol across India, there’s been debate about its impact on vehicles, their powertrains and performance. Many vehicle owners have reported a significant drop in fuel economy after using the E20 petrol as compared to before.
Dismissing the lingering public scepticism regarding the performance metrics of alternative biofuels, Gadkari defended the technology’s engineering standards. He dismissed concerns that ethanol is an inferior fuel, saying its performance characteristics are comparable to conventional fuels. The minister cited technical presentations confirming that the power and torque outputs of vehicles running on ethanol are entirely comparable to petrol. “Sometimes people talk about ethanol as an inferior fuel, but it is not,” he stated.
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Source : Hindustan Times
