Home Articles Govt to soon allow direct sale of E100 as standalone fuel
KEY STORY
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Modi government is working overtime to reduce dependence on crude imports. Sources tell ET Now that the government will soon be releasing an order allowing the direct sale of E100 for use as a standalone fuel for compatible automobiles.
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The government is set to release this under Motor spirit and high-speed diesel Amendment order, 2021 likely next week.
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The government is planning to add an additional clause, 6B under Motor Spirit and High-Speed Diesel order 2005 where the limited purpose of direct sale of bioethanol(E100) for use as standalone fuel or blending with motor spirit, for compatible automobiles will be allowed.
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Sources tell ET Now that the government officials have also held a meeting with automobiles and industry representatives to speed up the process of flexible engines in order to push the way for E100 as fuel.
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“This is an open market mechanism where we are trying to divert the demand for fuel to an alternative. This will indirectly also help in reducing petrol prices due to depleting demand,” shared a source on conditions of anonymity.
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The government has been focused on its agenda of converting surplus sugar and grains into ethanol for fuel consumption. As per official data, in order to achieve a 20% ethanol blending target, India needs 1000 cr litre ethanol capacity whereas OMC’s has already bought Rs 283 crore litres of ethanol from sugar mills.
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Ministry of Road, Transport and Highways has notified the use of E20, a blend of 20% of Ethanol with 80% of gasoline, as automotive fuel and issues mass emission standards for the same.
CONCLUSION
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The Ministry has set mass emission standards for the fuel and has directed automakers to define a vehicle’s compatibility with specific ethanol blend levels.
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The compatibility of a vehicle with the level of ethanol blend of E20 would be defined by the vehicle manufacturer and be displayed on a vehicle by putting a clearly visible sticker
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Brent crude oil prices are currently at $70 a barrel and have so far in 2021 increased by about 33%.
