New draft rules soon on 'E85 & more' vehicles as government pushes ethanol shift

NEW DELHI: The government is likely to issue a fresh notification for laying down the test requirements for vehicles that can run on almost 100 per cent ethanol (E100) and petrol, a move that would encourage automobile manufacturers to produce Flex-Fuel Vehicles (FFVs).

While the road transport ministry, in December 2022, had notified the “applicability of test requirements” for vehicles that can run on E5 to E85 per cent fuel, a draft notification to replace the condition of E85 to “E85 or more” was issued on June 27, 2025.





But the final notification could not be issued within the stipulated six months, and the process lapsed. It was during this period that a controversy had broken out over the impact of ethanol-blended fuel on the mileage of vehicles and the increased requirement of maintenance.

TOI has learnt that with the focus now back on promoting alternative fuels in the light of the ongoing West Asia crisis, the government is set to publish the new draft notification to seek feedback from stakeholders before going ahead with the plan.

Though most of the vehicle manufacturers have come up with prototypes of FFVs, commercial production is yet to begin. Engines that are designed to run on E100 can operate on lower ethanol blends from E20 onwards.

Meanwhile, the petroleum and natural gas ministry has held two rounds of meetings with vehicle manufacturers on FFVs.

TOI on March 30 had reported that the OEMs, in the first round, had flagged the need to address consumer concerns, particularly to lower fuel costs, considering that ethanol-fueled vehicles give less mileage.

The industry sought a clear roadmap about the fuel stations that would dispense ethanol, compensation for mileage loss, which is around 27-30 per cent less than petrol, and an incentive for people to buy FFVs, considering these are expensive.

Last year petroleum minister Hardeep Singh Puri had written to FM Nirmala Sitharaman seeking GST parity of FFVs with EVs. Currently, the GST for FFVs is 28 per cent compared to only 5 per cent for EVs.
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