n a major step towards advancing cleaner energy and strengthening India’s biofuel programme, the Central Government has granted excise duty exemption on petrol blended with higher proportions of ethanol. The exemption covers fuel blends containing 22% to 30% ethanol, including E22, E25, E27 and E30.
As per a notification issued by the Ministry of Finance, the measure is intended to accelerate the adoption of higher ethanol blends and further support the country’s ethanol blending targets. The exempted categories include petrol mixed with ethanol in concentrations ranging between 22% and 30% by volume.
The decision is in line with the government’s efforts to improve energy security, reduce reliance on imported crude oil, promote domestic ethanol production from sugarcane and grains, and curb vehicular carbon emissions.
India has made notable strides in expanding ethanol blending in recent years as part of its clean energy transition strategy. The excise duty exemption is expected to provide an added boost to the use of higher ethanol-blended fuels by both oil marketing companies and consumers, while contributing to the country’s sustainability and energy independence goals.
