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India's ethanol blending initiative has witnessed robust growth. (Img: Internet)
New Delhi: In a significant step towards promoting cleaner transportation fuels, the Centre has announced a complete waiver of central excise duty on petrol blended with higher levels of ethanol. The move expands fiscal support beyond the existing E20 fuel standard and is aimed at encouraging wider adoption of biofuels across the country.
The decision was notified by the Ministry of Finance's Department of Revenue through an amendment to the central excise framework first introduced in June 2017.
Under the revised notification, petrol blended with ethanol at 22%, 25%, 27% and 30% levels will attract zero excise duty. The exemption applies to fuel mixtures that meet prescribed quality standards and taxation requirements.
The government said the eligible fuel blends must consist of petrol and ethanol on which the applicable taxes have already been paid. Additionally, the blended fuel must conform to the Bureau of Indian Standards (BIS) specification IS 19850.
The latest measure aligns with India's broader strategy to reduce dependence on imported crude oil and increase the use of domestically produced renewable fuels. Higher ethanol blending is expected to help lower fossil fuel consumption while supporting the country's energy security objectives.
The policy is also likely to benefit the agricultural sector by creating stronger demand for ethanol production, which is largely sourced from sugarcane and other agricultural feedstocks.
The excise duty exemption reflects the government's continued focus on cleaner energy alternatives and lower carbon emissions. By encouraging fuel retailers and producers to adopt higher ethanol blends, policymakers aim to accelerate the transition toward a more sustainable and diversified energy ecosystem.
The latest amendment marks another step in India's ongoing efforts to expand biofuel use and build a greener transportation sector.
