Many people believe E85 flex fuel will reduce their fuel expenses because it costs around ₹20 less per litre than E20 petrol. However, fuel price alone does not determine running costs. The actual cost depends on how much fuel a vehicle consumes to travel a certain distance.
Most studies and real-world estimates suggest that fuel efficiency can drop by around 25-30% when switching from petrol to E85. This means the lower pump price may not translate into lower running costs.
With E85 Flex Fuel, assume mileage drops by 27% to around 36.5 kmpl.
Why E85 Delivers Lower Mileage
E85 fuel contains 85% ethanol and 15% petrol. While ethanol is cleaner and domestically produced, it contains less energy than petrol. As a result, vehicles running on E85 need more fuel to cover the same distance.Most studies and real-world estimates suggest that fuel efficiency can drop by around 25-30% when switching from petrol to E85. This means the lower pump price may not translate into lower running costs.
2-Wheeler Calculation
Let's take the example of a motorcycle that delivers 50 kmpl on E20 petrol. Assume the rider travels 60 km every day.- With E20 Petrol
- Mileage: 50 kmpl
- Fuel required: 1.2 litres per day
- Fuel price: ₹102 per litre
- Daily fuel cost: ₹122
- Monthly fuel cost: ₹3,660
- Fuel required: 1.64 litres per day
- Fuel price: ₹82 per litre
- Daily fuel cost: ₹135
- Monthly fuel cost: ₹4,050
Future Pricing
The current E85 price may not remain the same forever. As more flex-fuel vehicles enter the market, demand for ethanol could rise sharply. Since ethanol is produced from agricultural crops such as sugarcane and maize, higher demand may eventually push prices upward.
Flex-fuel vehicles are also expected to cost more than regular petrol vehicles due to additional engineering and fuel-system modifications. Buyers will need to recover this extra purchase cost through fuel savings, which may not happen unless E85 becomes substantially cheaper than E20 petrol.
Flex-fuel vehicles are also expected to cost more than regular petrol vehicles due to additional engineering and fuel-system modifications. Buyers will need to recover this extra purchase cost through fuel savings, which may not happen unless E85 becomes substantially cheaper than E20 petrol.
More Factors to Consider
The calculations above only compare fuel prices and mileage. They do not include other ownership factors such as engine durability, maintenance costs, reliability, longevity, and resale value.Since E85-compatible passenger vehicles are not yet available in India, there is little long-term data on how these vehicles will perform after years of use.
Flex-fuel vehicles require specialised components to handle high ethanol content, which could affect servicing and repair costs. Resale values are also uncertain.
These factors may not increase costs, but they remain important considerations when evaluating the true cost of E85 ownership.
Also Read: Kia Sonet Scores 1-Star NCAP Crash Test: Here's The Truth
The Bottom Line
A lower fuel price does not always mean lower running costs. Under current price assumptions, E85 may actually cost more per kilometre than E20 petrol because of its lower fuel efficiency.For E85 to offer meaningful savings, it would likely need to be significantly cheaper than it is today. Until flex-fuel vehicles become widely available, buyers can simply monitor how the technology develops before making a decision.
Disclaimer: The above calculations are based on assumptions. Actual mileage, power, torque, and fuel efficiency figures for upcoming E85-compatible two-wheelers and four-wheelers have not yet been officially revealed. Real-world running costs may vary depending on vehicle specifications, fuel prices, and driving conditions.