E-85 Program to Boost Annual Ethanol Demand by 3.12 Billion Liters

08-Jun-2026 01:11 PM

New Delhi: The Central Government has launched the E-85 program to facilitate the operation of flex-fuel vehicles. The petrol required for these vehicles can contain an ethanol blend ranging from 20% to 100%.

A leading industry body, the Indian Sugar & Bio-energy Manufacturers Association (ISMA), states that the launch of this program could generate a demand for an additional 3.12 billion liters of ethanol in the country.

According to the association, if the share of flex-fuel vehicles (FFVs) in new vehicle sales rises to 50%, an additional 3.12 billion liters of ethanol would be required annually for blending with petrol.

This could boost farmers' income by ₹12,400 crore per year while reducing carbon dioxide (CO2) emissions by 6.64 million tonnes.

Under the E-85 program, the price of ethanol-blended petrol would stand at just ₹82.12 per liter, compared to ₹102.12 per liter under the E-20 program, offering significant relief to motorists.