In a bid to increase ethanol blending in petrol, the Union Ministry of Road Transport and Highways has issued a draft notification, which proposes to amend the Central Motor Vehicles Rules, 1989.
The draft includes a provision for E85 fuel, petrol blended with 85 percent ethanol. Besides, the document proposes E100, pure ethanol fuel. Similarly, the provision will apply to diesel, which will be referred to from B10 to B100. At present, E20, petrol blended with 20 percent ethanol is in effect.
The ministry, in an April 27 gazette notification, said that the draft is open for a 30-day consultation period for inviting objections or suggestions from stakeholders. This will be followed with a decision by the government.
This development assumes significance as India is the world’s third largest oil user, consuming about 5.6 million barrels per day of oil. As the domestic crude oil production is limited, it imports around 89 percent of its total crude oil consumption shelling out $150 billion per year.
To reduce the dependence on imported oil and gas, the government has been advancing on various paths, including rolling out the Ethanol Blended Petrol (EBP) Programme. Over the last 11 years, from Ethanol Supply Year (ESY) 2014-15 to October 2025 of ESY 2024-25, India has saved India 1.55 lakh crore of foreign exchange and crude oil substitution of 260 lakh metric tonnes by blending ethanol in petrol. Besides, the West Asia crisis triggered by the US-Israel-Iran war, has witnessed de-facto closure of the Strait of Hormuz, a narrow critical waterway through India imports its around 35 to 50 percent of its crude oil imports.
