The move paves the way for the launch of flex-fuel vehicles (FFVs) by companies.

- FFVs are capable of operating on ethanol blends from E20 to E100, without restricting consumers to a single blend.
About Ethanol Blending
- Ethanol blending refers to the process of mixing ethanol with petrol to create a more sustainable and cleaner burning fuel.
- Types: E10 (10% Ethanol by Volume), E20 (20% Ethanol), E85 fuel (80-85% ethanol by volume), E100.
- India’s targets: 20% ethanol blending (E20) in petrol by 2025-26 (under the Ethanol Blended Petrol (EBP) Programme and National Policy on Biofuels, 2018 amended in 2022).
- Achievements:
- E20 target achieved in 2025 (5 years ahead of initial schedule).
- E85 rolled out across several retail outlets of Public Sector OMCs.
Benefits of higher ethanol blends
- Reduce Crude Oil Import Dependence: EBP program saved India ₹1.84 lakh crore in foreign exchange since ESY 2014-15.
- Boost Farmers' Income: Additional income opportunities through ethanol production from sugarcane, maize, damaged food grains, and agricultural residues.
- Cleaner Fuel:
- FFVs operating on E85 can reduce lifecycle greenhouse gas emissions by around 61% compared to conventional petrol vehicles.
- Higher ethanol blends promote more complete combustion, resulting in near-zero particulate matter emissions.
- High-Octane Fuel: With an octane rating of 100–105, ethanol offers better combustion efficiency and is suitable for high-performance engines.
- Cheaper alternative: E.g., E85 is priced nearly ₹20 per litre lower than conventional petrol.