NEW DELHI: The government is anticipated to release a new notification outlining the testing requirements for vehicles capable of running on nearly 100 percent ethanol (E100) and petrol. This initiative aims to promote the production of Flex-Fuel Vehicles (FFVs) by automobile manufacturers.
In December 2022, the road transport ministry had already notified the applicability of test requirements for vehicles operating on fuel blends of E5 to E85. However, a draft notification issued on June 27, 2025, proposed adjusting the condition to accommodate “E85 or more.” Because the final notification was not issued within the designated six-month period, the process subsequently lapsed. During this interval, concerns arose regarding the impact of ethanol-blended fuel on vehicle mileage and the potential increase in maintenance needs.
Sources indicate that, with renewed emphasis on alternative fuels amid the ongoing crisis in West Asia, the government plans to issue a new draft notification to solicit feedback from relevant stakeholders before proceeding with the initiative. While many vehicle manufacturers have developed prototypes of FFVs, commercial production has yet to commence. Engines designed for E100 are capable of operating on lower ethanol blends from E20 and above.
Simultaneously, the petroleum and natural gas ministry has conducted two rounds of discussions with vehicle manufacturers regarding FFVs. Previous reports indicated that in the initial meeting, manufacturers voiced concerns about consumer issues, particularly regarding reduced fuel costs, as ethanol-fueled vehicles typically deliver 27 to 30 percent less mileage compared to petrol vehicles.
The industry has requested a clear roadmap detailing the establishment of fuel stations supplying ethanol, compensation for the mileage shortfall, and financial incentives for consumers considering the higher cost of FFVs. Last year, Petroleum Minister Hardeep Singh Puri addressed a letter to Finance Minister Nirmala Sitharaman advocating for GST parity for FFVs in line with electric vehicles (EVs). Currently, FFVs are subject to a GST of 28 percent, while EVs benefit from a significantly lower rate of 5 percent.
