New Delhi, June 11 (IANS): The Centre has exempted petrol blended with higher levels of ethanol from excise duty, including fuel variants containing 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol, according to a notification issued by the Ministry of Finance on Thursday. The notification sets excise duty at nil for ethanol-blended motor spirit that conforms to Bureau of Indian Standards specifications, covering blends with ethanol content ranging from 22 per cent to 30 per cent by volume. Issued under Section 5A of the Central Excise Act, 1944, the exemption applies to E22, E25, E27 and E30 petrol, which are defined as mixtures of petrol and ethanol in specified proportions, subject to applicable central, state, Union Territory or integrated taxes on ethanol and duty-paid petrol components.
The move is part of the government’s broader push to expand ethanol blending under its biofuel policy aimed at reducing dependence on crude oil imports and encouraging the use of renewable fuels. India has steadily increased ethanol blending levels in recent years through policy initiatives under the National Policy on Biofuels, with blending targets advanced to 2025-26. The development follows the recent launch of E85 fuel for compatible flex-fuel vehicles. Union Petroleum and Natural Gas Minister Hardeep Singh Puri has highlighted the country’s progress in ethanol adoption, stating that ethanol blending in petrol increased from 1.5 per cent in 2014 to 10 per cent by November 2022. He noted that the government’s target of achieving 20 per cent ethanol blending by 2030 was accomplished ahead of schedule in 2024.