E20 vs E85 Running Cost: Which Fuel Saves More Money for Drivers?

E85 fuel is much cheaper compared to E20 petrol at around ₹20 per litre, fuel economy could offset any potential savings, so compatibility of the car with the fuel is essential.
E20 Vs E85 Fuel Cost Comparison
E20 and E85 fuels differ in efficiency, mileage and overall running costs. Images used for representation purpose only.

The landscape of fuels in India seems to have moved into an entirely new phase, as a new fuel named E85 has made its way into the market. While this high-ethanol fuel promises to be an economical and environment friendly option to petrol, many analysts claim that the equation of cost effectiveness is not that simple after all.

While the current petrol mix available in the Indian market is E20, which means that it contains 20 percent ethanol and 80 percent petrol, the new E85 fuel consists of 85 percent ethanol. Introduced specifically for flex fuel vehicles that can run efficiently with higher ethanol mixes, the fuel was launched last month at a price of ₹82.12 per litre, almost ₹20 less than E20 petrol, which costs ₹102.12 per litre.

Though the difference in price seems to tilt the balance in favour of E85, there is something more important to consider here. Ethanol does not produce as much energy as petrol does. That is why it is expected that vehicles running on E85 will need more fuel per kilometre, thus making their mileage 25 to 35 per cent less than E20.

In other words, drivers will pay less for every liter of fuel purchased, they might still end up filling their tanks more often. Hence, the effective cost of operation may depend on the specifics of each individual case, including particular make of the vehicle, operating conditions, and engine tuning.

Compatibility is another crucial factor. According to automotive experts, E85 cannot be used in regular E20 cars, since it requires special parts to work properly. Moreover, E85 can damage incompatible engines.

E85 is considered one of the key elements of the country’s ethanol strategy which seeks to minimize the volume of imported crude oil, secure fuel supply, and support biofuels production in Russia. The authorities plan to progressively expand access to E85 via fuel stations in various regions.

E20 vs E85: Key Comparison

ParameterE20E85
Ethanol Content20%80-85%
Petrol Content80%15-20%
Delhi Price (Approx.)₹102.12/litre₹82.12/litre
Vehicle CompatibilityMost modern petrol vehiclesFlex-fuel vehicles only
Mileage ImpactMinimal25-35% lower than E20
Running Cost AdvantageStableDepends on mileage loss
Environmental BenefitModerateHigher

Also Read: How Indian Workers Are Helping Build the AI Systems That will Replace Them Soon

In the end, whether one chooses to go for E20 or E85 would depend largely on their vehicle’s compatibility and their needs when driving. Although using E85 fuel is cheaper and provides an ecological advantage, it is more practical to use E20 until flex-fuel cars become more common.

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