India Allows 100% Ethanol Cars, But Where Is the Fuel? Supreme Court Questions Centre

The Supreme Court on Thursday questioned how India would ensure adequate fuel supplies if vehicles running entirely on ethanol are permitted, highlighting a potential gap between the country’s vehicle regulations and its current fuel policy.

A bench of Justices M M Sundresh and Prasanna B Varale raised the question while hearing petitions concerning ethanol allocation for the 2025-26 Ethanol Supply Year. Referring to recent media reports about the government’s decision to allow vehicles compatible with nearly pure ethanol, the court asked how the necessary supplies would be arranged.

Attorney General R Venkataramani told the bench that such a transition would require large-scale changes in manufacturing arrangements.

The question follows an October 26 notification by the Ministry of Road Transport and Highways amending the Central Motor Vehicles Rules, 1989, to explicitly include E100 fuel alongside E85 in emission certification provisions. E100 contains nearly 100 per cent ethanol, while E85 comprises 85 per cent ethanol and 15 per cent petrol.

However, Petroleum and Natural Gas Minister Hardeep Singh Puri said on October 27 that the Centre had no immediate plans to increase ethanol blending in petrol beyond the existing 20 per cent level (E20). The distinction is important: allowing vehicles to run on E100 does not mean that E100 fuel is immediately available at scale or that petrol blending will increase beyond E20.

The bench also stressed that ethanol policy must be assessed through the lens of farmers’ welfare, environmental concerns and wider public interest. Justice Sundresh emphasised the need to empower farmers and people living in villages, arguing that their interests deserved greater attention in the debate.

The case also involves a dispute over ethanol allocation. On June 30, the Supreme Court ordered status quo on a Karnataka High Court direction concerning supplies for the 2025-26 period. The dispute arose after an ethanol manufacturer sought preferential allocation under long-term supply agreements with oil marketing companies.

The bench has scheduled the next hearing for November, when the government is expected to address the issues raised by the court.