India’s push towards alternative fuels has taken a big step forward with the launch of E85 fuel in Delhi. The new ethanol-blended fuel, introduced on the occasion of World Environment Day, is priced at Rs 82.12 per liter in the national capital, making it about Rs 20 cheaper than regular E20 petrol, which currently retails at Rs 102.12 per litre.The first E85 fuel dispenser in Delhi is at an Indian Oil outlet. It was inaugurated by Union Petroleum and Natural Gas Minister Hardeep Singh Puri. E85 fuel contains 85 percent ethanol and 15 percent gasoline.At first glance, lower prices may seem attractive, especially at a time when fuel prices remain high. However, there is an important catch. Currently, only three vehicles in India are compatible with E85 fuel. These include the newly launched Hero Splendor+ Flex Fuel, Hero HF Deluxe Flex Fuel and Suzuki Gixxer SF 250 FFV. No other production car or motorcycle currently on sale in India can officially run on E85 fuel.Hero MotoCorp recently launched its first flex-fuel commuter motorcycles in India. The Splendor+ Flex Fuel is priced at Rs 82,710, ex-showroom Delhi, while the HF Deluxe Flex Fuel is priced at Rs 72,792, ex-showroom. Both motorcycles use a reworked 97.2cc single-cylinder engine capable of running on ethanol blends up to E85.Meanwhile, Suzuki is already selling the Gixxer SF 250 FFV in India. Price Rs 1.98 lakh, ex-showroom. Maruti Suzuki has showcased the E85 compatible Wagon R Flex fuel several times over the past few years. However, the company is yet to officially launch the car or announce pricing details. Once launched, it could become India’s first flex-fuel passenger car.The rollout of E85 fuel will be limited initially. The fuel is currently being introduced at select Indian Oil outlets in Delhi-NCR and Maharashtra. The government plans to expand this network significantly over the next two years. According to Hardeep Singh Puri, around 500 ethanol dispensing stations will be operational by the end of 2026, while the target is to reach 5,000 outlets by 2027.