11 June,2026 02:27 PM IST | New Delhi | mid-day online correspondent
India accelerates ethanol push with excise relief for higher blends. Representational Pic
The Central Government has exempted higher ethanol-blended petrol from excise duty, giving a boost to India's efforts to increase the use of cleaner and domestically produced fuels.
According to a notification issued by the Ministry of Finance on Thursday, petrol blended with ethanol levels ranging from 22 per cent to 30 per cent will attract zero excise duty. The exemption covers E22, E25, E27 and E30 fuel variants that comply with Bureau of Indian Standards (BIS) specifications.
The notification stated that excise duty on these ethanol-blended fuels has been fixed at nil under Section 5A of the Central Excise Act, 1944.
The revised fuel categories include E22, E25, E27 and E30, which are blends of petrol and ethanol in varying proportions. While excise duty has been waived, other applicable central, state, Union Territory or integrated taxes on ethanol and petrol components will continue to apply.
The move is part of the government's broader strategy to increase ethanol blending in petrol and reduce India's dependence on imported crude oil, reported IANS.
Over the past few years, India has steadily increased the proportion of ethanol mixed with petrol under the National Policy on Biofuels. The policy aims to promote renewable energy, support farmers and reduce carbon emissions from transportation.
The latest exemption is expected to encourage the production and use of higher ethanol-blended fuels in the country.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri recently highlighted India's progress in ethanol blending.
"From 2014 until now, we have increased ethanol blending from 1.5 per cent to 10 per cent, which was achieved in November 2022. Our target was to achieve 20 per cent blending by 2030, but we completed it in 2024 itself," Puri said, as per the news agency.
According to the minister, ethanol blending in petrol has grown significantly over the past decade, reflecting the government's focus on alternative and cleaner fuels.
The excise duty exemption comes shortly after the government launched E85 fuel for compatible flex-fuel vehicles. E85 contains a much higher percentage of ethanol and is designed for vehicles capable of running on different fuel blends.
With the introduction of new fuel variants and policy support measures, the government aims to further strengthen India's biofuel ecosystem and reduce reliance on conventional fossil fuels.
(With IANS Inputs)
