India's state-run oil marketing companies launched E85 ethanol-blended petrol on Friday, priced about ₹20 per litre lower than regular fuel. The government aims to expand distribution of this high-ethanol blend as part of its target to achieve 26% aggregate ethanol blending by 2030–31, seeking to reduce the country's $120-billion annual crude import bill, according to livemint.com.
The rollout was announced by Union minister for petroleum and natural gas Hardeep Singh Puri at an Indian Oil retail outlet in New Delhi. Currently, about 48 retail outlets offer the new E85 petrol, which leverages rising domestic ethanol production capacity. The government is promoting ethanol blending to reduce reliance on imported crude oil and support local agriculture and industry sectors.
This move aligns with India's broader energy and environmental goals, including reducing carbon emissions and enhancing energy security. The 26% ethanol blending target by 2030–31 represents a significant increase from current levels, reflecting a strategic shift in fuel policy. The price discount on E85 petrol is expected to encourage consumer adoption, potentially influencing fuel consumption patterns and supporting the domestic ethanol industry.
The government plans to increase the availability of E85 petrol beyond the initial 48 outlets as part of its ethanol blending expansion strategy. The initiative supports India's goal to lower crude oil imports, which currently cost the country $120 billion annually, as stated by the petroleum ministry at the launch event.