Why govt says E85 fuel is feasible but parallel E10, pure petrol supply isn't

The government has defended its decision to roll out E85 fuel while ruling out parallel nationwide supplies of E10 and E0 petrol.

In a written reply to Rajya Sabha, Minister of State for Petroleum and Natural Gas Suresh Gopi said 85 caters to a niche segment of flex-fuel vehicles whereas maintaining multiple grades of petrol across more than one lakh fuel stations “would significantly increase logistics complexity, inventory and handling costs.”

Gopi said public sector oil marketing companies (OMCs) launched E85 fuel at 48 retail outlets across Delhi-NCR, Pune, Mumbai, Thane and Nagpur on June 5, 2026.

The clarification comes amid questions over why the government considers a separate supply chain for E85 feasible but has maintained that supplying E10 alongside E20 across the country is not practical.

According to the minister, E85 is meant only for flex-fuel vehicles that can run on ethanol blends ranging from E20 to E85 and is required only in select markets for a targeted customer base.

On the other hand, operating parallel nationwide supply chains for E0, E10 and E20 petrol across more than one lakh retail outlets would substantially increase logistics complexity as well as inventory and fuel handling costs, he said.

"Public policy must balance consumer convenience with energy security, environmental sustainability and farmer welfare," the minister said in the written reply.

He further argued that once a cleaner and scientifically validated fuel has been adopted, the objective is to move forward with improved technology rather than revert to an older and inferior standard.

The minister also said OMCs have not incurred any additional capital expenditure for E85 storage infrastructure so far.

Existing storage facilities at supply locations are sufficient for the current limited demand for E85, while the initial rollout has utilised existing storage and dispensing infrastructure available at retail outlets, he said.