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Informist, Thursday, Jun. 11, 2026

 

MUMBAI – The central government has exempted from excise duty petrol blended with 22-30% ethanol, extending support to blends beyond the currently existing E20. Fuel variants E22, E25, E27, and E30 will not attract excise duty, according to a government notification issued Wednesday evening. The move comes after the government introduced a new technical specification framework for higher ethanol fuel blends beyond the current E20. The country achieved its target of 20% ethanol blending in December. 

 

According to the notification, E22 fuel will comprise 78% petrol and 22% ethanol, while E25, E27 and E30 fuels will contain 25%, 27% and 30% ethanol, respectively. The exemptions apply to the appropriate duties of excise that have been paid on motor spirit and applicable goods and services tax paid on ethanol used in the blend. 

 

This comes after the government had introduced a new Indian standard for higher ethanol-petrol blends, covering E22, E25, E27, and E30 fuels in May. The latest notification is an amendment to two gazettes dated 2017 and 2002, while the government has also issued separate notifications exempting these higher blends from additional excise duties and road and infrastructure cess.

 

On Apr. 28, the Ministry of Road Transport and Highways had issued a notification proposing amendments to the Central Motor Vehicles Rules to include higher ethanol blends such as E85 and E100, as well as biodiesel and hydrogen blended gas. While E85 is 85% ethanol blended with petrol, E100 is pure ethanol used in flex-fuel vehicles.

 

The move comes amid the supply chain disruption of crude oil due to the West Asia war, especially after the closure of the Strait of Hormuz, through which 20% of the world's oil supply passes. This may raise the production capacity utilisation of ethanol in the going ahead.  End

 

Reported by Simran Rede

Edited by Deepshikha Bhardwaj

 

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