New E85 fuel in Delhi costs Rs 20 less than petrol! Here’s the catch

India’s push towards alternative fuels has taken a major step forward with the launch of E85 fuel in Delhi. Introduced on World Environment Day, the new ethanol-blended fuel is priced at Rs 82.12 per litre in the national capital, making it around Rs 20 cheaper than regular E20 petrol, which currently retails at Rs 102.12 per litre.

The first E85 fuel dispenser in Delhi is at an Indian Oil outlet. It was inaugurated by Union Petroleum and Natural Gas Minister Hardeep Singh Puri. E85 fuel contains 85 per cent ethanol and 15 per cent petrol.

At first glance, the lower pricing sounds attractive, especially at a time when fuel prices continue to remain high. However, there is a major catch. Currently, only three vehicles in India are compatible with E85 fuel. These include the newly launched Hero Splendor+ Flex Fuel, Hero HF Deluxe Flex Fuel and the Suzuki Gixxer SF 250 FFV. No other production car or motorcycle on sale in India can officially run on E85 fuel at the moment.


Hero MotoCorp recently launched its first flex-fuel commuter motorcycles in India. The Splendor+ Flex Fuel is priced at Rs 82,710, ex-showroom Delhi, while the HF Deluxe Flex Fuel costs Rs 72,792, ex-showroom. Both motorcycles use a reworked 97.2cc single-cylinder engine capable of operating on ethanol blends of up to E85.

Meanwhile, Suzuki already sells the Gixxer SF 250 FFV in India. Priced at Rs 1.98 lakh, ex-showroom. Maruti Suzuki has also showcased an E85-compatible Wagon R Flex Fuel multiple times over the last few years. However, the company is yet to officially launch the car or announce pricing details. Once launched, it could become India’s first flex-fuel passenger car.

The rollout of E85 fuel will initially remain limited. The fuel is currently being introduced at select Indian Oil outlets across Delhi-NCR and Maharashtra. The government plans to expand this network significantly over the next two years. According to Hardeep Singh Puri, around 500 ethanol dispensing stations will be operational by the end of 2026, while the target is to reach 5,000 outlets by 2027.