Govt backs E100 fuel, flex-fuel vehicles; allows SAF blending in aviation fuel via gazette notification

DPIIT announced regulatory exemptions to encourage alternate fuels and noted enhanced energy allocations for commercial LPG and PNG. The ministry also cited reductions in basic customs duties on various inputs beneficial to sectors such as paint, paper, tyre, glass, leather, footwear and ceramics. DPIIT also referenced ongoing energy-related consultations and approvals related to CNG/CBG infrastructure and energy supply.

Senior officials indicated that the idea of ethanol-blended fuels, including E100 and flex-fuel vehicles, has arrived, with timelines dependent on readiness of automobile manufacturers and petroleum refiners and ongoing stakeholder consultations.

A ministry gazette notification defined aviation turbine fuel (ATF) as both a complex hydrocarbon mix and as synthesised hydrocarbons blended with cooking oil or ethanol, creating a legal basis for sustainable aviation fuel (SAF) blending.

The government issued guidelines permitting night-time operations for LPG bottling plants, enabling extended operating hours and potentially higher production capacity.

Petronet LNG Ltd was permitted to commission an additional 5 million metric tonnes per annum (MMTPA) of re-gasification capacity at its Dahej terminal, taking total capacity to 22.5 MMTPA to bolster natural gas supply for city gas distribution.

Petroleum and Explosives Safety Organisation (PESO) approved 467 applications for installing CNG and CBG dispensing stations between March 25 and April 21, 2026, expediting the expansion of alternative-fuel refuelling infrastructure.

To safeguard domestic availability, the government imposed a complete export ban on ammonium nitrate on March 18, 2026, citing West Asia tensions and the need to ensure adequate ammonium nitrate supply for uninterrupted coal production in India.