Ethanol: The road to a viable flex-fuel market | Explainer
AI-summarised brief · reviewed before publication
The government has cleared E100 fuel regulations, paving the way for a viable flex-fuel market. E85 fuel is being introduced at select petrol pumps, requiring specially engineered flex-fuel vehicles. E85 contains 80-85% ethanol, differing substantially from E20, which contains 20% ethanol. The rollout of flex-fuel vehicles and infrastructure must be coordinated to make ethanol mobility a success. India is introducing E85 to diversify its energy base and reduce dependence on imported crude oil. E85 can provide an additional market for ethanol and support domestic agriculture.
💡 Why It Matters
- · India's energy diversification efforts hinge on successfully integrating ethanol into its fuel market.
- · Exempting higher ethanol-petrol blends from excise duty levels the playing field for E85 adoption.