India Waives Excise Duty on Ethanol-Blended Petrol to Expand Alternative Fuel Use
India has eliminated excise duty on ethanol-blended petrol variants (E22, E25, E27, E30) as part of efforts to expand alternative fuel adoption. The move follows recent fuel price increases linked to Middle East tensions and aims to support the government's plan to establish 500 ethanol fuel stations by end of 2026. The policy addresses energy security concerns while offsetting lower energy content in ethanol blends through pricing incentives.
India's government has waived excise duty on multiple ethanol-blended petrol variants containing 22-30% ethanol by volume, according to a finance ministry notification. The exemption applies to E22, E25, E27, and E30 fuel blends, which mix varying proportions of motor spirit with ethanol. The policy is part of a broader strategy to expand ethanol fuel infrastructure, with plans to open 50-100 ethanol fuel stations across Delhi-NCR, Pune, Mumbai, and Nagpur, scaling to 500 stations by end of 2026. State-run oil marketing companies are also preparing to offer E85 fuel (85% ethanol) at a Rs 20 per litre discount compared to E20 petrol to compensate for ethanol's approximately one-third lower energy content. The move comes amid elevated global crude oil prices driven by Middle East geopolitical tensions, which have contributed to petrol and diesel price increases exceeding Rs 7.5 per litre in India.
What's missing
The specific date of the finance ministry notification and the effective date of the excise duty waiver are not provided. Additionally, details on the current number of ethanol fuel stations operational in India and the timeline for the initial 50-100 station rollout are absent.
What different sources said
- The HinduCenter
Higher ethanol blended petrol between 22-30% exempted from central excise duty
- The Times of IndiaCenter
India slashes excise duty on ethanol-blended petrol: Key details
- Times of IndiaCenter
India slashes excise duty on ethanol-blended petrol: Key details
- NDTVCenter
Centre Removes Excise Duty On Higher Ethanol Fuel. What It Means For You
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