New Delhi: In a move aimed at accelerating the adoption of cleaner transportation fuels, the Central Government has extended central excise duty exemptions to petrol blended with higher percentages of ethanol, reinforcing its commitment to sustainable energy and reduced dependence on fossil fuels.
According to the latest notification issued by the Ministry of Finance, petrol containing 22%, 25%, 27% and 30% ethanol blends will now be eligible for nil central excise duty, provided the fuel meets the prescribed quality standards laid down by the Bureau of Indian Standards (BIS).
The revised provisions cover ethanol-blended petrol where the applicable duties and taxes on both petrol and ethanol components have already been paid. The exemption is intended to encourage the production and distribution of higher ethanol blends while maintaining strict quality benchmarks for consumers.
The policy forms part of the government’s broader strategy to increase ethanol blending in automotive fuels, a step expected to reduce crude oil imports, lower carbon emissions and provide greater support to India’s sugarcane and biofuel sectors.
Industry experts believe that extending tax benefits to higher ethanol blends could encourage fuel manufacturers and oil marketing companies to expand the availability of greener fuel options across the country. The move is also expected to strengthen India’s long-term energy security by promoting domestically produced biofuels.
Officials have emphasised that only fuel blends conforming to BIS specifications will qualify for the excise duty exemption, ensuring that environmental objectives are pursued without compromising fuel quality or vehicle performance.
The latest notification further expands the government’s ethanol blending framework and is expected to play a key role in advancing India’s clean energy transition and sustainable mobility goals.
