India now sells petrol with 20 percent ethanol. What comes next? The government says it has taken no decision to raise the blend further. The next step is a different kind of vehicle, called a flex-fuel vehicle.
This lesson explains that vehicle in simple steps. It covers the October 2026 rule change, the mileage and warranty worries, and where the ethanol comes from. It also compares Brazil. For the blending programme itself, read Ethanol Blended Petrol (EBP) Programme in India.
- 20 percent: average ethanol blending in 2025-26, about five years ahead of schedule.
- E85 and E100: now written into the vehicle approval rules, for approved flex-fuel vehicles only.
- Beyond E20 at the pump: no decision yet (Rajya Sabha reply, 20 July 2026).
- Ethanol capacity: about 2,000 crore litres in 2026.
- Brazil: a temporary E32 blend since August 2026 (E30 before that); about 80 percent of new cars are flex-fuel.
- Existing owners: no need to switch or modify their vehicles.
Must Know · Understand the words
Why flex fuel after E20?
Because the pump blend has reached 20 percent, and the government has no plan to raise it now. Higher ethanol use must then come from special vehicles. This is the key link between the two ideas.
Where does India stand on E20?
Ethanol is a fuel alcohol made from plants such as sugarcane and maize. Blending means mixing it into petrol. India raised its average blend from under 1.5 percent in 2013-14 to 20 percent in 2025-26. The government says this came five years ahead of schedule.
Ethanol production capacity grew from 421 crore litres in 2014 to about 2,000 crore litres in 2026. India imports close to 88.5 percent of the crude oil it uses. That is why the government pushes ethanol.
What is the way forward?
On 20 July 2026, the Rajya Sabha was told that no decision exists to raise blending above 20 percent. With the pump fuel held at E20, the route to higher ethanol use is the approved flex-fuel vehicle. It can use E85 or E100.
In June 2026 two makers launched such vehicles. Hero MotoCorp launched the Splendor+ and HF Deluxe Flex Fuel motorcycles on 3 June. Maruti Suzuki launched a WagonR that runs on E20 to E100 on 4 June.
What is a flex-fuel vehicle?
A flex-fuel vehicle runs on a range of ethanol and petrol blends from one fuel tank. Depending on design and approval, the range may reach E85 or E100. An ordinary E20 car does not have this ability.
What do E10, E20, E85 and E100 mean?
The letter E stands for ethanol. The number gives the ethanol share by volume. So E20 has 20 percent ethanol. E85 has up to 85 percent.
| Fuel | Meaning | Who can use it |
|---|---|---|
| E10 | 10% ethanol by volume | Vehicles suited to E10 |
| E20 | 20% ethanol; the national pump blend, reached in 2025-26 | E20-ready vehicles |
| E85 | Up to 85% ethanol | Only vehicles approved for E85 |
| E100 | Fuel that is predominantly ethanol | Only vehicles approved for E100 |
Check 1
E85 means a fuel with up to 85 percent ethanol by volume.
How is a flex-fuel vehicle different from an E20 car?
The difference lies inside the vehicle. Fuel system parts and materials are chosen for the approved blends. Engine controls then adjust by itself to the fuel mix in the tank.
| Feature | E20-compliant car | Flex-fuel vehicle |
|---|---|---|
| Fuel range | Petrol up to E20 | Wide range, up to E85 or E100 as approved |
| Fuel system | Designed for E20 | Parts and materials chosen for approved blends |
| E85 use | Not suitable unless approved | Allowed within the approved range |
| Engine control | Normal petrol set-up | Adjusts by itself to fuel mix |
A common mix-up: a car that works on E10 or E20 is not by itself safe on E85. Being suitable for E10 or E20 alone does not make a vehicle suitable for E85.
Check 2
A car that runs well on E20 can safely use E85 as well.
Is there a hybrid example?
On 29 August 2023, Toyota Kirloskar unveiled an electrified flex-fuel Innova Hycross. It was designed to run on up to 85 percent ethanol. It was described as BS6 Stage-II compliant and able to run on electric power up to 60 percent of the time. Toyota’s Vikram Gulati called it a prototype.
Good to Know · Follow the rules and the roadmap
What changed in October 2026?
It made E85 and E100 a formal part of vehicle approval. The Ministry of Road Transport and Highways (MoRTH) amended the Central Motor Vehicles Rules (CMVR), 1989. The aim is to support flex-fuel vehicles that use E85 and other high-ethanol fuels.
What exactly changed?
- The emission approval rules now expressly include E100 alongside E85.
- Certified vehicles must meet the emission and safety rules for their category.
- The rule change also updates biodiesel-related provisions and makes technical corrections.
- The rules take effect from the date of publication in the Official Gazette.
In mid-June 2026, Union Minister Nitin Gadkari said he had signed the file settling rules to allow E100 as a vehicle fuel. The rule change was formally issued in October 2026.
Who does it apply to?
It applies only to vehicles specifically designed and approved for E85 or E100. It does not apply to other vehicles generally available in the market or used till date. Owners of existing vehicles are not required to switch or modify their vehicles, now or in the future.
Motorists should check the fuel fuel sticker and the owner’s manual.
Check 3
After the October 2026 rule change, owners of ordinary petrol cars must switch to E85 or E100.
PIB reported that MoRTH amended the CMVR, 1989, to certify flex-fuel vehicles for E85 and E100. The release was posted on 26 October 2026. Why it matters: it links the E20 pump fuel to a separate, vehicle-based route for higher ethanol use. Read the site item: MoRTH amends Central Motor Vehicles Rules to certify flex-fuel vehicles for E85 and E100. (Source: PIB)
Is India going beyond E20?
Not at the petrol pump, as of now. On 20 July 2026, Suresh Gopi, Minister of State for Petroleum, gave a written Rajya Sabha reply. It said no decision exists to go beyond E20. E85 and E100 are only for approved flex-fuel vehicles.
What would happen before any increase?
Any increase would follow comprehensive scientific and technical studies. Consultations are planned with automobile makers, oil marketing companies and research institutions. So the E20 pump fuel stays as it is for now.
How did India reach the E20 target?
The National Policy on Biofuels, 2018 originally aimed at 20 percent blending by 2030. The target was advanced from 2030 to 2025. PRS dates the decision to December 2020. The Prime Minister announced it publicly on 5 June 2021, when the NITI Aayog roadmap for 2020-25 was released.
That roadmap planned E10 availability by April 2022. It planned a phased move to E20 from April 2023, for E20 by 2025. It projected ethanol demand for blending at 1,016 crore litres in 2025-26.
| Date | Event |
|---|---|
| May-Jun 2018 | National Policy on Biofuels: 20% by 2030 |
| 5 Jun 2021 | NITI Aayog roadmap 2020-25 released |
| 10 Aug 2022 | IOCL Panipat 2G ethanol plant dedicated |
| 3-4 Jun 2026 | Hero and Maruti flex-fuel launches |
| 20 Jul 2026 | Rajya Sabha: no decision beyond E20 |
| 26 Oct 2026 | PIB release on CMVR rule change for E85 and E100 |
Check 4
India has decided to raise petrol blending at the pump to E27 or E30.
Is the mileage worry true?
Partly. Ethanol holds less energy than petrol, so mileage can dip a little. The government says the loud “30 percent mileage cut” figure is not a real-world result. It says that figure comes only from ethanol’s lower energy value.
How big is the mileage dip?
Energy value is the energy a fuel gives when burnt. Ethanol has less of it than petrol. Maruti Suzuki says a car giving 20 km per litre loses roughly 0.6 km per litre on E20.
Ethanol also resists knocking better. Its research octane number is about 108.5, against 84.4 for petrol. E20 raises the effective octane rating of Indian petrol to around 95.
Does E20 damage engines?
E20 was cleared after testing with vehicle makers. The testers were the Society of Indian Automobile Manufacturers (SIAM), the Automotive Research Association of India (ARAI) and Indian Oil Corporation Limited (IOCL). The government says E10-designed and older vehicles were tested with E20 without verified widespread engine damage.
The Rajya Sabha reply gave user numbers. Over 20 crore two-wheelers and over 3 crore petrol cars ran on E15-plus or E19-E20 fuel. It reported no verified widespread engine failures. Maruti serviced 2.84 crore vehicles in FY 2025-26. Over 1.5 crore were not E20-approved, and Maruti found no E20 damage.
What about insurance, warranty and cost?
The government says E20 does not affect insurance validity. SIAM says warranties will be honoured for vehicles running spec-compliant E20. For E85 and E100, follow the maker’s guidance and the fuel fuel sticker.
Cost is a fair concern. Ethanol buying costs have risen above refined petrol costs. The mandate continues for energy security and farm income.
Check 5
The government says the 30 percent mileage-cut figure comes from real-world road tests.
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Where will ethanol come from?
Today it comes from sugarcane, maize and rice. Only surplus rice, as permitted by the Department of Food and Public Distribution (DFPD) after food security needs, is used for ethanol. The long-term hope is ethanol from farm waste.
What is 2G ethanol?
The 2018 policy splits biofuels into two groups. Basic biofuels are first-generation (1G) bioethanol and biodiesel. Advanced biofuels include second-generation (2G) ethanol, fuels made from municipal solid waste, third-generation (3G) fuels and bio-CNG.
The Indian Oil Corporation (IOCL) Panipat 2G plant was dedicated to the nation on 10 August 2022, World Biofuel Day. Its capacity is 100 kilolitres a day. It uses about 2 lakh tonnes of rice straw a year to make around 3 crore litres of ethanol a year. The plant cost over Rs 900 crore and helps curb stubble burning.
How much water does ethanol need?
The government says a distillery uses 3-5 litres of processed water per litre of ethanol. The NITI roadmap noted that one litre of sugar-based ethanol needs about 2,860 litres of water. The two figures come from different sources. Compare them with care.
Since 2014-15, savings stand at over Rs 1.97 lakh crore in foreign exchange. Carbon dioxide savings stand at about 952 lakh tonnes. Both figures are from the Rajya Sabha reply of 20 July 2026. Ethanol buying rose from about 38 crore litres in 2013-14 to over 1,040 crore litres by June 2026.
What does Brazil teach India?
Brazil shows that flex-fuel cars and higher blends can work together at scale. About 80 percent of new passenger cars sold in Brazil are flex-fuel. They can run on blended petrol or pure hydrous ethanol. For the wider ties, see India-Brazil Relations.
What is Brazil’s blend now?
Brazil moved to E30 on 1 August 2025. It then raised the blend for a short time to E32 from 1 August 2026, for 180 days, extendable once. The legal ceiling is E35.
Brazil’s E30 and E32 approvals rested on tests of petrol-only cars and motorcycles. Its car makers’ group, Anfavea, said flex-fuel technology allows use of 100 percent ethanol. The US also has millions of flex-fuel capable vehicles that can run on blends as high as E85.
What about tax support?
In September 2024, Gadkari asked state finance ministers to consider cutting the Goods and Services Tax (GST) on flex-fuel vehicles to 12 percent. A request to consider a cut is not a rate change. Check the current GST schedule for the real rate.
Check 6
Roughly four in five new passenger cars sold in Brazil are flex-fuel.
What matters for the exam?
Remember three things: the meaning of E85, the October 2026 rule change, and the 2018 biofuel policy. The box below shows how UPSC tested the policy.
PYQ: UPSC Civil Services Prelims 2020, Q84.
According to India’s National Policy on Biofuels, which of the following can be used as raw materials for the production of biofuels ?
1. Cassava 2. Damaged wheat grains 3. Groundnut seeds 4. Horse gram 5. Rotten potatoes 6. Sugar beet
(a) 1, 2, 5 and 6 only.
(b) 1, 3, 4 and 6 only.
(c) 2, 3, 4 and 5 only.
(d) 1, 2, 3, 4, 5 and 6.
Key: (a) 1, 2, 5 and 6 only. Cassava, damaged wheat grains, rotten potatoes and sugar beet are approved raw materials. Groundnut seeds and horse gram are not on the policy’s list. See Q84 in the full paper.
Which traps should you avoid?
- Ministry mix-up: MoRTH makes the motor vehicle rules. The petroleum ministry runs the blending programme.
- Compatibility mix-up: E20 compatibility does not mean E85 compatibility.
- Scope mix-up: E85 and E100 apply only to approved vehicles. Pump petrol stays at E20.
- Brazil mix-up: E30 started on 1 August 2025. The E32 rise from 1 August 2026 is temporary.
- First launches: Hero motorcycles on 3 June 2026 and the Maruti WagonR on 4 June 2026.
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