Government Proposes New Rules to Include E85 and E100 Fuels in Motor Vehicle Norms

The Ministry of Road Transport and Highways has proposed amendments to the Central Motor Vehicles Rules, 1989 to include higher ethanol blends within emission and type-approval norms, as per news reports.  

The draft notification introduces E85 and E100 fuels into the regulatory framework and is open for public comments for 30 days. 

The proposal follows the nationwide adoption of E20 petrol in 2025 and shows a further expansion of the ethanol blending programme. 

Changes to Fuel and Emission Standards 

The draft revises petrol classification from E10/E to E10/E20 in line with current blending levels. It formally includes E85, containing 85% ethanol, and E100, referring to near-pure ethanol use in compatible vehicles. 

Biodiesel norms have been updated from B10 to B100. Hydrogen classification has been revised to “Hydrogen + CNG”. The notification also standardises emission testing parameters and technical notations.  

In certain categories, the gross vehicle weight threshold has been increased from 3,000 kg to 3,500 kg. 

Framework For Testing, Not Rollout 

The proposed changes are intended to enable testing and certification of vehicles using higher ethanol blends. They do not mandate immediate commercial use.  

Discussions are ongoing with automobile manufacturers and oil marketing companies on vehicle readiness and distribution infrastructure. 

Flex-fuel vehicles, which can operate on multiple ethanol blends, are expected to play a role, though large-scale availability remains limited. 

Ethanol Programme and Import Savings 

The ethanol blending programme has been part of efforts to reduce dependence on imported crude oil.  

Government data indicates that around 4.5 crore barrels of crude oil are saved annually, with foreign exchange savings of about ₹1.65 lakh crore. 

India’s fossil fuel import bill is estimated at roughly ₹22 lakh crore each year, keeping alternative fuels under policy consideration. 

Transition-Related Issues 

Policy assessments indicate that vehicles originally designed for E10 fuel and later adapted for E20 may see a 1-2% decline in fuel efficiency. This mainly affects vehicles manufactured between 2012 and March 2023. 

Vehicles produced after April 2023 are E20 material compliant, while those sold from April 2025 are expected to be fully compatible.  

Industry body SIAM has suggested tax measures to offset efficiency changes, but no such measures have been notified. 

Read More: Noida Lok Adalat On May 9: Here is How to Clear Traffic Challans, Legal Disputes in One Go! 

Conclusion 

The draft amendments establish a regulatory basis for higher ethanol blends, with E20 continuing as the current standard. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.