Noida, June 11 (APAC Media): The Central government on Thursday extended central excise duty exemptions to petrol blended with 22%, 25%, 27% and 30% ethanol, according to an official notification.
Under the revised framework, ethanol-blended petrol meeting the prescribed Bureau of Indian Standards (BIS) specifications will attract a nil rate of central excise duty, a move aimed at encouraging the adoption of higher ethanol blends and supporting the country’s biofuel programme.
The decision comes as the government pushes for greater use of ethanol-blended fuels following the rollout of E20 petrol across the country. The measure is expected to improve the commercial viability of higher ethanol blends and encourage their wider availability.
“India spends a substantial amount on crude oil imports every year. Increasing the use of ethanol-blended fuels will help reduce this dependence, lower pollution levels and provide additional income opportunities for farmers growing crops such as sugarcane and maize,” Road Transport and Highways Minister Nitin Gadkari said.
“The promotion of higher ethanol blends is an important step towards achieving energy self-reliance, reducing carbon emissions and strengthening the rural economy through greater demand for agricultural feedstocks,” he added.
India has been steadily increasing the ethanol blend in petrol as part of its strategy to cut fuel imports, enhance energy security and meet environmental goals. The government had earlier advanced its target of achieving 20% ethanol blending in petrol and is now exploring the introduction of higher-blend fuels.
“The excise duty exemption on higher ethanol-blended petrol is expected to encourage fresh investments in ethanol production capacity and strengthen India’s biofuel ecosystem,” an official familiar with the development said.
Industry representatives welcomed the decision, stating that the measure would improve the viability of higher ethanol blends, expand their market adoption and support the transition towards cleaner and more sustainable mobility solutions.
However, the exemption is unlikely to result in an immediate reduction in retail petrol prices. Fuel prices are influenced by multiple factors, including international crude oil prices, refining costs, transportation charges and dealer margins.
The latest measure underscores the government’s broader push towards alternative energy sources and sustainable transportation.
Policymakers believe increased use of ethanol-based fuels will help reduce carbon emissions, strengthen rural incomes and lessen India’s reliance on imported crude oil over the long term.
–ENDS–
Disclaimer:Â Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
Also Read:
