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Fuel push must keep pace with market

28 0
06.05.2026

India has barely settled into E20, a petrol blended with 20 per cent ethanol, and the next shift is already on the table. Policymakers are preparing for E85, a fuel that depends on a different ecosystem altogether. The ambition is clear. But the system to support it is not. E85 is not simply a higher blend of the same fuel. It represents a different system altogether. Unlike E20, which functioned as a near-universal petrol replacement, E85 requires flex-fuel vehicles with specialised engines and fuel systems. Most vehicles on Indian roads today are not compatible.

Even many newer models are not designed for such high ethanol content. That distinction is not technical, it is structural. The contrast with E20 makes this clearer. E20 worked because it built on what already existed. It did not require a wholesale shift in vehicles or infrastructure. E85 does the opposite. It depends on a new category of vehicles, separate dispensing systems at petrol stations, and a supply chain capable of handling higher ethanol concentrations. It is not an incremental extension. It is a parallel system. This creates a sequencing problem.

Policy is moving ahead, but the market is still catching up. Flex-fuel vehicles remain limited to early rollouts. Petrol stations will need to upgrade storage and dispensing capacity, and many, especially in outer cities, are not equipped to handle multiple high-blend fuels. Without clear demand signals, investment will remain limited and rollout uneven. When policy outpaces the marke t , supply b e comes inconsistent and........

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