E85 fuel has been launched in India, marked by the inauguration of the first dispensing station at IndianOil's outlet in Delhi. This new fuel category contains up to 85% ethanol and is priced at ₹82.12 per litre, which is ₹20 cheaper than E20 fuel. However, while the price difference offers potential savings, users should note that ethanol has lower energy content, resulting in a 20-30% reduction in fuel efficiency when compared to petrol. Therefore, the cost per kilometre is a more crucial metric than the price per litre. Currently, only flex-fuel vehicles (FFVs) can utilize E85 without damaging the engine, with the Maruti Suzuki WagonR Flex Fuel being the only passenger car available for this fuel type. The government is promoting E85 to enhance sustainable mobility, but its future success will hinge on maintaining a meaningful price advantage as it becomes more widely available across India.