
India’s Ethanol-blending program is in the news again. The country is set to move beyond E20 (20% Ethanol-blended petrol). The government has now issued a draft notification to enable the use of E85 and E100 fuels in the country. This push comes as part of the country’s strategy to cut dependence on imported petroleum.

The Ministry of Road Transport and Highways has issued a draft notification proposing amendments to the Central Motor Vehicles Rules. These changes will facilitate the smooth introduction of higher ethanol blends.
India achieved its E20 target (20% Ethanol blending target) well ahead of the proposed 2030 timeline. India achieved E20 rollout in 2025. Now, policymakers are looking to create a framework that would allow vehicles to use significantly higher Ethanol blends. The proposal, first reported by Reuters, wants to take Ethanol blending well beyond E20- to E85 and E100, in the near future.
For those unfamiliar with these terms, E85 petrol is a blend of 85% Ethanol and 15% petrol, while E100 means 100% Ethanol- in other words, near-pure Ethanol fuel. These are not intended for use in conventional vehicles. Flex fuel vehicles (FFVs) can operate smoothly on pure Ethanol and E85 petrol. The policymakers’ plan is to gradually enable these in India as part of the long-term strategy.

The government has now invited public feedback on the draft. These will be analysed and a final decision will be arrived at, in the coming months. If everything goes as planned, we may see the trials starting by December this year.
India’s heavy reliance on imported crude oil and the recent supply disruptions and price volatility caused by the West Asia war seem to have shaped this hastened transition to flex fuel and higher blends.
The government estimates that the Ethanol Blended Petrol programme already saves around 4.5 crore barrels of crude oil annually. It has also helped reduce foreign exchange outflow significantly, strengthening the case for even higher blending levels.
There is also an environmental reason to this. Ethanol burns cleaner than pure petrol, and blended fuel has lower emissions. A complete transition to this, the authorities believe, can bring down pollution levels in many cities.

Union Transport Minister Nitin Gadkari recently made a loud statement about the direction that the country would take with its future fuel strategy. Speaking at the Busworld Conclave 2026, he said that petrol and diesel vehicles have no future in India, and urged automakers to come up with alternatives, and the public to switch to fuels like ethanol, hydrogen, CNG, LNG and electricity.
While the policy direction is clear, the transition is not without challenges. Vehicles that were originally designed for E10 fuel and later adapted for E20, may experience issues like a notable drop in fuel efficiency and more. This particularly applies to vehicles manufactured between 2012 and early 2023. Many automakers have started making E20-compliant models from April 2023 onward. However, ensuring full compatibility across product range will take time.
Adapting an E10 for E20 compatibility is relatively easy. However, ensuring compatibility for higher blends (E85 and E100) will require extensive changes in engine design, fuel systems and materials. This re-engineering is essential to ensure long-term reliability and efficiency.

The governmental move has prompted responses from within the automotive industry. The Society of Indian Automobile Manufacturers has recommended tax incentives on ethanol-blended fuels to offset any efficiency losses for consumers. However, the government hasn’t announced any such incentives yet. Discussions between policymakers and industry stakeholders continue, around the future fuel direction and regulatory support.
Early regulatory support is essential for any new fuel trend to become successful in a market. Remember how electric vehicles were incentivized heavily in the early stages? These benefits tapered in stages as EVs grew in acceptance. Incentivization helped generously in shaping their acceptance here. We may see a similar approach in the case of flex fuel vehicles too.
Implementation is another major hurdle. E85 and E100 will need separate dispensers to be set up at fuel stations. These will serve only flex-fuel vehicles while normal vehicles would continue using E20 dispensers. Even in the case of normal petrol, blending may eventually be taken to E21-22.
Countries like Brazil already have widespread ethanol-powered mobility, and India may even take a lesson of two from these global examples. And for the automakers, brands like Maruti Suzuki and Toyota are making rapid progress with flex-fuel technology. Flex fuel-based Maruti Fronx and Toyota Hycross have already been showcased. TVS Motor company has also confirmed that it is ready with flex-fuel technology.
Source: Reuters