To further promote cleaner fuels, the Ministry of Road Transport and Highways (MoRTH) intends to amend the Central Motor Vehicles Rules, 1989. The draft, which is open for public consultation for 30 days, proposes several changes to the law. The most important among them is allowing vehicles to run on E100, which is 100% ethanol. In other words, vehicles could run entirely on ethanol instead of blending with petrol or diesel. Similar fuel is available in Brazil, where vehicle owners can choose at the pump between petrol and ethanol.
The draft also proposes expanding the definition of light vehicles by raising the weight limit from 3,000 kg to 3,500 kg to encourage the development of flex-fuel vehicles, which can run on different mixtures of petrol and ethanol. A flex-fuel vehicle is one that can operate on more than one type of fuel.
The proposal is aimed not just at promoting greener fuels but also reducing India’s dependence on crude oil imports, which currently meet around 88% of its needs. The government expects the policy to boost farmers’ incomes as well, as ethanol is mainly produced from crops such as sugarcane and maize. In a related move, the government last week allowed blending of ethanol and synthetic fuels in aviation turbine fuel (ATF), though no mandatory targets have been set.
Proposed amendments
The draft brings important updates to how petrol and ethanol fuels are defined under the rules. The biggest change is the expansion of the ethanol fuel category. Earlier, the rules mentioned only E85, which containing 85% ethanol and 15% petrol. The new draft changes this to “E85 or E100”, meaning nearly pure ethanol would be part of the fuel options basket.
As a result, vehicle manufacturers will now have to design engines that can run on high ethanol blends, including 100% ethanol. Until now, most vehicles in India were designed to run on lower blends such as E10 or E20. This change is likely to push companies to develop more flex-fuel vehicles.
For consumers, there will be no immediate impact, as most current vehicles are designed for E20 or lower blends. However, over time, this could lead to more fuel options at petrol pumps and wider use of cleaner fuels.
Other key changes
The draft also updates the petrol fuel category. Earlier, the rules referred to petrol as “E10/(E)”, where E10 was clearly defined but “E” was vague. This has now been replaced with “E10/E20”, which clearly includes petrol blended with 20% ethanol. The draft clears the confusion and officially recognises E20 as a standard fuel.
Another major change is the expansion of the scope of these rules. Earlier, emission norms applied to vehicles with a gross weight of up to 3,000 kg. The new proposal increases this limit to 3,500 kg to firewall "greener" vehicles from being unfairly penalised or forced into a "heavy truck" licensing category just because their fuel system is slightly heavier.
The draft also includes a technical clarification related to HCNG, stating that it refers to a mixture of hydrogen and compressed natural gas. While this may look like a small change, it shows the government’s focus on promoting cleaner fuels like hydrogen.
Why push for ethanol?
India has been steadily increasing ethanol blending in petrol over the past few years. The country achieved 10% blending ahead of schedule in 2022, and this has now increased to around 19–20%.
Ethanol blending helps save foreign exchange and reduces crude oil imports. It also supports farmers by creating demand for crops used to produce ethanol. The programme has led to significant payments to farmers and large savings in import costs. This is one of the key reasons why the government is now looking to go beyond E20 and allow higher ethanol blends like E85 and E100.
There are also environmental benefits. Studies, including those by NITI Aayog, suggest that ethanol-based fuels can significantly reduce greenhouse gas emissions compared to petrol. This makes ethanol an important part of India’s strategy to meet its climate goals.
Oil marketing companies achieved 10% blending in petrol in June 2022, ahead of the target. Blending levels have continued to rise, reaching over 12% in 2022–23, around 14–15% in 2023–24, and close to 19–20% by mid-2025.
To support this growth, the government has taken several steps. They include expanding the raw materials used for ethanol production, introducing financial incentives for producers, lowering GST on ethanol used for blending, and launching interest subvention schemes to boost production capacity. These measures helped scale up ethanol supply and make higher blending possible.
Concerns raised
Despite the push, concerns have been raised about the impact of higher ethanol blends on vehicles. One major concern is related to mileage. Ethanol has lower energy density than petrol, which means vehicles running on higher ethanol blends may deliver slightly lower fuel efficiency.
There are also concerns about compatibility. Vehicles not designed for high ethanol blends could face issues such as corrosion or faster wear and tear if used with fuels like E85 or E100. Experts say only specially designed engines should use such fuels.
Some critics have also argued that ethanol-blended fuel should be cheaper, but this benefit is not always passed on to consumers. Over time, the cost of ethanol has increased, and in some cases it is no longer cheaper than petrol, affecting pricing.
The Centre, however, rejected the charges. It says vehicles designed for higher ethanol blends can perform efficiently and may even offer benefits such as better acceleration and smoother driving. It also argues that fuel efficiency depends on several factors, including driving habits, maintenance, tyre pressure, and traffic conditions, not just fuel type.
Global experience
Brazil is the only country where E100 (100% ethanol) is widely used in everyday vehicles. Since the 1970s, it has built a full ethanol ecosystem. Most vehicles there are flex-fuel, meaning they can run on petrol (E20–E27) or pure ethanol. At fuel stations, drivers can choose between petrol and ethanol.
Brazil’s success is largely due to its large-scale sugarcane production, which makes ethanol cheaper, and strong government support since the oil crisis of the 1970s. It has also developed the necessary infrastructure, including fuel stations and vehicle technology.
In contrast, the US mainly uses E10 or E15, with some flex-fuel vehicles using E85, but not E100. Similarly, the European Union and countries like Thailand, the Philippines, and Canada use ethanol blends, but not pure ethanol at a large scale.