Centre Proposes E100 Fuel Norms to Expand Ethanol Use in Transport

The Government of India has proposed amendments to the Central Motor Vehicle Rules, 1989, to formally allow vehicles to run on 100% ethanol. The draft notification dated April 29, 2026, seeks to position ethanol as a primary transport fuel by enabling higher blending norms.

The move aligns with efforts to reduce crude oil imports and support domestic biofuel capacity. It also reflects readiness for wider adoption of fully bio-based transport fuels.

Proposed Amendments to Motor Vehicle Rules

Under the draft notification, references to E85 have been proposed to be replaced with “E85 or E100” across multiple provisions of the Central Motor Vehicle Rules. This change will legally enable the use of 100% ethanol fuel in vehicles designed to support higher blends.

The proposal also includes replacing B10 biodiesel references with B100, signalling readiness for fully biodiesel-based fuels. These changes would allow manufacturers and fuel suppliers to plan for broader biofuel deployment.

Ethanol Supply, Demand, and Capacity Utilisation

India produced approximately 20 billion litres of ethanol as of March 2026. Current demand under the 20% Ethanol Blended Petrol mandate is estimated at around 11 billion litres. This gap has resulted in under-utilisation of domestic ethanol production capacity. Allowing E100 vehicles is expected to gradually absorb surplus supply and improve capacity utilisation across ethanol manufacturing units.

Flex-Fuel Vehicles and Global Experience

Vehicles capable of operating on varying ethanol blends, including E100, are known as flex-fuel vehicles. These vehicles can run on petrol, ethanol, or any combination of the 2 fuels.

Globally, flex-fuel vehicles are widely used in Brazil, where they were introduced in 2003. In recent years, over 90% of new cars and 2-wheelers sold in Brazil support ethanol, petrol, or blended fuel use, providing a reference model for India.

India’s Ethanol Blended Petrol Programme

India launched the Ethanol Blended Petrol programme in 2003 to cut oil imports and support farm incomes. Initial progress was gradual, but momentum picked up after 2014 due to policy support and pricing incentives.

The country achieved 10% ethanol blending in 2022. The government has set a target of achieving 20% blending by FY26, supported by expanded feedstock options such as sugarcane and grains.

Read More: India Revisits GST Cuts on Flex-Fuel Vehicles as Iran Crisis Raises Fuel Concerns.

Conclusion

The proposal to allow E100 and B100 fuels represents a structural shift in India’s transport fuel policy. By amending vehicle rules, the Centre is aligning regulations with growing domestic biofuel capacity.

The move also strengthens flexibility for automakers and fuel suppliers over the long term. Overall, the draft amendments signal a broader push towards energy security, biofuel adoption, and reduced dependence on imported fossil fuels.

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