News Capsule: E85 Unlikely to Boost Ethanol Demand Soon; E20 Remains the Key Driver
16-Jun-2026 09:46 AM
News Capsule: E85 Unlikely to Boost Ethanol Demand Soon; E20 Remains the Key Driver
★ Despite the launch of E85 fuel (85% ethanol-blended petrol), ethanol demand is not expected to rise significantly in 2025-26.
★ For now, ethanol demand is likely to remain largely driven by the requirements of E20 fuel (20% ethanol-blended petrol).
★ Industry experts believe the adoption of flex-fuel vehicles will be slow during the initial years.
★ Recently, Maruti Suzuki and Hero MotoCorp launched India's first flex-fuel vehicles, capable of running on fuel blends ranging from E20 to E100.
★ The government has started selling E85 fuel at around 50 retail outlets and has priced it ₹20 per litre lower than E20 to encourage consumer adoption.
★ The industry expects ethanol demand to increase gradually over the coming years as the number of flex-fuel vehicles grows.
★ Meanwhile, a dispute between oil marketing companies (OMCs) and distilleries over ethanol procurement policies has delayed new ethanol purchase tenders.