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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.
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Live Mint broke the news in New Delhi, India on Thursday, June 11, 2026.
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