India's next ethanol push: excise relief for higher blends, draft rules for E85 and E100

📌 Summary:

• The Union government exempted higher ethanol-petrol blends (22%-30% ethanol) from central excise duty, putting their tax treatment on par with the current standard E20 (20% ethanol) blend
• It also proposed amendments to the Central Motor Vehicles Rules to formally recognise 85% ethanol-blended fuel (E85) and 100% ethanol fuel (E100)
• Two distinct goals: (a) the excise move targets most existing petrol cars by enabling a shift from E20 to higher blends; (b) the rules amendment targets a new category, flex fuel vehicles (FFVs), designed to run on varying petrol-ethanol blends
• FFVs are still some way from wide introduction in the Indian market
• Petroleum Minister Hardeep Singh Puri launched E85 fuel in New Delhi on June 5, 2026
• The article notes worries in pushing beyond E20 (engine compatibility, mileage, feedstock/food-vs-fuel pressures) and suggests lessons from Brazil's flex-fuel ecosystem

🎯 UPSC Relevance: GS3 (Economy/Energy & Environment) — ethanol blending programme, energy security, import substitution for crude, biofuel policy, and the food-vs-fuel debate.

📝 Prelims Facts:

• E20 = 20% ethanol blend (current standard); E85 = 85%; E100 = 100% ethanol
• Flex Fuel Vehicles (FFVs) run on variable ethanol-petrol blends
• Recognition of E85/E100 proposed via amendments to the Central Motor Vehicles Rules; Brazil is the global model for flex-fuel

🔑 Key Term: Flex Fuel Vehicle (FFV) — a vehicle with an engine that can run on multiple petrol-ethanol blend ratios, up to very high ethanol content.