E85 Vs E20 Petrol: Which Is More Cost Effective?

The ethanol-rich fuel is priced at Rs 82.12 per litre, about Rs 20 cheaper than regular E20 petrol, with thousands of stations planned across the country by 2027.

India's first E85 fuel station has opened in New Delhi, offering fuel at Rs 20 less than regular E20 petrol.

Source : Somnath Chatterjee

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Key points generated by AI, verified by newsroom

• E85 fuel cheaper; cars cost more, lower efficiency.

E85 fuel dispensing station has opened in New Delhi in Pusa Road while the price is Rs 82.12, which is Rs 20 cheaper than regular E20 petrol.

Point is there are no cars on sale right now which support E85 fuel, with Maruti launching the Wagon R flex fuel yesterday for commercial use, while private buyers will most probably be able to buy once the fuel is available across other cities.

At first it will be limited, with 50 and 100 E85 dispensing stations coming soon and then increasing to 500 stations by the end of this year. The plan is to increase it to a further 5,000 stations by the end of 2027.

What It Means For Consumers

The question for the consumer is whether it makes more sense with Rs 20 cheaper fuel, but you have to factor in that E85 flex-fuel compliant cars will have less fuel efficiency than E20, while the price would be slightly higher too, like CNG variants.

Flex-fuel cars require extensive changes and that includes the fuel tank, ECU and other components, which means there would be a price hike for a flex-fuel car.

Hence E85 fuel will make sense with more options, stations and those who can recover the cost difference.

Environmental Benefits And Future Outlook

E85 fuel is more environmentally friendly and has less emissions while costing less than E20 fuel.

In the years to come, we can expect more flex-fuel cars, which will bring more buyers who can consider a flex-fuel car, which is popular in markets like Brazil.