New Delhi: The Union government is reportedly planning to review and frame an operational policy for E85—petrol blended with 85% ethanol—against the backdrop of the West Asia conflict and volatile crude oil prices.

Recently, crude oil prices crossed USD 100 a barrel. The report notes that even a one-dollar rise could increase India’s import bill by up to Rs 16,000 crore.

E85 fuel contains 85% ethanol and 15% petrol. India currently uses E20 petrol, while ethanol producer associations have been urging the Centre to raise blending levels further.

India’s total ethanol requirement is estimated at 1,100 crore litres, while production is said to be higher at around 2,000 crore litres. Experts, however, say dedicated vehicle trials are needed to assess vehicle costs, manufacturing expenses, fuel availability and mileage for E85-compatible vehicles.