Supreme Court Asks Government How Supply Will Meet 100 Percent Ethanol Vehicles

The Supreme Court has asked the Government how fuel supply will be managed if permission is granted for vehicles that run entirely on ethanol. A Bench of Justices M.M. Sundresh and Prasanna B. Varale raised the question during a hearing on Thursday, October 29, 2026, pointing to recent media reports about 100 percent ethanol-driven vehicles.

Recent Policy Moves

On October 26, the Road Transport Ministry updated the Central Motor Vehicles Rules 1989 to permit flex-fuel vehicles running on up to E100, which is nearly pure ethanol. Just a day later, Petroleum and Natural Gas Minister Hardeep Singh Puri stated that the Centre has no immediate plans to raise petrol blending beyond the current 20 percent. The Supreme Court was originally hearing pleas regarding ethanol allocation for the Ethanol Supply Year 2025-26, following a petition by an oil marketing company against a Karnataka High Court order.

Official Responses

Responding to the Bench's query on fuel supply, Attorney General R. Venkataramani noted that providing 100 percent ethanol will require large-scale manufacturing rearrangements. During the proceedings, the Court emphasized the need to look at the issue from an environmental standpoint and focused heavily on the welfare and empowerment of farmers across the country. The Bench noted that the interests of the rural populace must be addressed. The Court has posted the matter for further hearing next month.

Context

Ethanol is an alcohol-based fuel often blended with petrol to reduce vehicle emissions and cut down on crude oil imports. Because ethanol is produced from crops like sugarcane and grains, government policies on blending are closely linked to agricultural markets and rural incomes. Flex-fuel engines are built to handle higher fuel blends than standard petrol vehicles, requiring distinct supply chains and manufacturing standards.