India Moves to Slash an 85% Fuel Import Habit With E100 Ethanol

India has cleared the regulatory framework for 100% ethanol as a vehicle fuel, opening the way for cars that run on biofuel instead of imported petrol.

Road Transport Minister Nitin Gadkari signed the file. The decision comes after the Iran war put pressure on India’s import bill.

India Opens Door to E100 Ethanol Fuel for Vehicles

Gadkari announced the decision while speaking at an event. He noted that the government wants to raise domestic fuel output over time and build viable substitutes for petrol and diesel.

“Last night at around 8 pm, I signed the file making rules for 100% ethanol and giving it legal process,” he stated. “The country has an import of 22-lakh crores. Now, the resolution we made to reduce this import… gradually gas will also be produced in the country. An alternative to petrol and diesel will also be ready.”

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E100 refers to near-pure ethanol. Vehicles need specially calibrated engines to burn it, and automakers are now building them. 

Maruti Suzuki has shown a flex-fuel WagonR, and Hero MotoCorp has launched two ethanol-ready motorcycles. Gadkari said Toyota, Suzuki, Hyundai, and MG will follow within about six weeks.

US-Iran War Exposes India’s Fuel Dependence

India imports close to 85% of the fuel it consumes. That dependence turned costly after the US and Israel struck Iran on February 28.

The conflict closed the Strait of Hormuz. India had relied on the route for roughly half its crude and most of its gas. 

The war-driven supply crunch pushed New Delhi to act on several fronts. In May, Prime Minister Narendra Modi urged citizens to cut fuel use and work from home.

India also leaned harder on the US. Washington sent 630,000 tonnes of LPG in May. That haul ran about 60% above the 380,000 tonnes from all Gulf states combined. US LNG cargoes hit 900,000 tonnes over the same month.

The ethanol decision extends that push. Wider use of domestically produced biofuel should soften exposure to volatile crude prices. It also builds fresh demand for farm feedstocks.

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