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Government Greenlights Tax Exemption for Ethanol-Blended Fuels
On Thursday, the government of India extended central excise duty exemptions to petrol blends containing 22%, 25%, 27%, and 30% ethanol, covering E22, E25, E27, and E30 fuel variants.
The Bureau of Indian Standards introduced fuel-quality specifications for these blends effective May 15, 2026, as India seeks to reduce crude oil imports and boost domestic biofuel use.
While some media reports raised concerns regarding E20 fuel's impact on older vehicles, the Ministry of Petroleum and Natural Gas described these claims as unsupported by scientific evidence.
India plans to establish 5,000 flex-fuel pumps by 2027-end, though some consumers continue demanding that blended fuels sell at lower prices than conventional petrol.
Officials maintain that ethanol blending is a sustainable initiative offering multiple benefits, with vehicles manufactured from 2023 onward generally compatible with E20 fuel.