India Exempts Higher Ethanol-Blended Petrol Blends from Central Excise Duty

The Indian government has announced a central excise duty exemption on petrol blended with higher concentrations of ethanol, specifically at 22%, 25%, 27%, and 30% blending ratios, according to a gazette notification issued late Wednesday.

The move is widely seen as an effort to accelerate the uptake of biofuels in the country's transportation sector. The Bureau of Indian Standards (BIS) had notified the required fuel standards for these blends on May 19, though none of the higher-blend variants are currently available at commercial fuel stations.

"Following the achievement of 20% ethanol blending under the EBP Programme, the new standard aims to promote cleaner transportation, enhance energy security, reduce crude oil imports, and support the agriculture sector," BIS stated following the standards notification.

The gazette notification follows India's formal launch of the E85 petrol variant, a blend of 85% ethanol and 15% gasoline, on June 5, World Environment Day. E85 is priced approximately ₹20 per litre lower than the widely available E20 variant, potentially offering consumers a cost incentive alongside environmental benefits.

The excise exemption is expected to make higher-blend fuels more commercially viable for oil marketing companies and retailers once the supply chain is established.