India Plans Shift to Ethanol-Based Fuel: E85 Policy Under Consideration

India may soon move towards a major transition in its fuel strategy, with discussions underway at the central level to introduce alcohol-based fuel as an alternative to petrol and diesel. The government is reportedly working on plans to reduce dependence on conventional fossil fuels and promote cleaner, domestically produced energy sources.

If implemented, the new policy could see vehicles running on ethanol-blended fuel, particularly E85—a mix of 85% ethanol and 15% petrol—potentially replacing the currently used E20 fuel. The move comes in the backdrop of global fuel supply disruptions, especially due to geopolitical tensions in West Asia, which have impacted countries including India. To address such vulnerabilities and reduce reliance on fuel imports, India has been focusing on alternative energy options. Ethanol-based fuel is being seen as a viable solution to tackle fuel shortages and stabilize energy supply. Sources indicate that the government is preparing to release draft guidelines for the adoption of E85 fuel. Preliminary testing has reportedly already been conducted. However, vehicles would require certain engine modifications to operate on flex-fuel systems like E85. The plan, which was initially conceptualized in 2016, is now gaining momentum and could be implemented within the next two years, according to officials.