India clears E100 ethanol fuel rules for vehicles

The transport ministry has cleared a regulatory framework enabling E100 — near‑pure ethanol — to be used as a vehicle fuel after Road Transport Minister Nitin Gadkari signed the file at about 8pm on June 12, giving legal effect to the rules. The government says the policy seeks to reduce the country’s reliance on imported petrol and diesel, which make up roughly 85% of fuel consumed domestically and contribute to an import bill the minister put at 22‑lakh crore rupees.

E100 is near‑pure ethanol and cannot be used in standard petrol engines without modification. Vehicles need flex‑fuel or specially calibrated engines; manufacturers have begun preparing models. Maruti Suzuki has displayed a flex‑fuel WagonR and Hero MotoCorp has launched two ethanol‑ready motorcycles. Gadkari expects Toyota, Suzuki, Hyundai and MG to introduce compatible models within about six weeks.

Officials noted the decision follows supply shocks after the US and Israel struck Iran on Feb. 28, which led to the temporary closure of the Strait of Hormuz and disrupted crude and gas flows. India imports roughly half its crude and most of its gas through that route, and the conflict increased pressure on energy supplies and on import costs. In May, Prime Minister Narendra Modi urged citizens to cut fuel use and consider working from home as one measure to manage the disruption.

India has sought additional shipments from the United States to ease the shortfall. Washington sent about 630,000 tonnes of liquefied petroleum gas to India in May, about 60% more than the combined 380,000 tonnes delivered from Gulf suppliers over the same period. US liquefied natural gas shipments to India reached around 900,000 tonnes that month.

Regulators and industry must now set standards for fuel quality, vehicle certification and distribution infrastructure, including storage and retail handling of ethanol at filling stations. Wider use of domestically produced ethanol will require increased production from crops and other feedstocks and investment in vehicle and fuel supply chains.

Gadkari announced: “Last night at around 8 pm, I signed the file making rules for 100% ethanol and giving it legal process.”