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Breaking: Union Government allows E100 Petrol

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NEW DELHI: The Union government has officially cleared the regulatory pathway for the use of E100 ethanol fuel in vehicles specifically engineered to run on flexible fuel. The Ministry of Road Transport and Highways (MoRTH) implemented the change by amending the Central Motor Vehicles Rules, 1989.

Key Highlights of the Amendment

Inclusion of E100: The official Gazette notification (issued under G.S.R. 911(E)) incorporates E100 alongside E85 into the emission standards prescribed for flex-fuel vehicles.

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Definitions: E100 designates fuel containing 100 percent (or near-100 percent) ethanol, while E85 comprises an 85 percent ethanol blend. Flex-fuel vehicles are built to run on varying high-content blends of petrol and ethanol.

Weight Threshold Revised: Under the revised regulations, the gross vehicle weight threshold specified in the relevant emission standards has been raised from 3,000 kg to 3,500 kg.

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Rule Adjustments: Multiple provisions under Rule 115, which oversees vehicle emission standards, have been formally updated to replace references exclusively pointing to E85 with “E85 or E100”.

Scope and Restrictions

The newly permitted fuel standards apply strictly to vehicles engineered and designated by original equipment manufacturers (OEMs) as flex-fuel vehicles. The administration emphasized that E100 is not cleared for general use across all standard petrol-powered vehicles on the road.

Strategic Context

This regulatory shift aligns with India’s broader push to expand alternative fuel deployment in the transport sector, cut down massive crude oil import bills, and mitigate vulnerability to external energy crises. The amendments build upon draft rules initially floated on April 27, 2026, which invited public and stakeholder feedback.

The revised rules come into immediate effect following their publication in the Official Gazette. However, the notification does not outline a specific timeline for the nationwide commercial rollout or retail availability of E100 fuel pumps.

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Hellobanker Team

Hellobanker.in is India's leading banking and finance news portal. Our expert team covers banking policies, RBI updates, financial markets, and investment insights.
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