New Delhi, June 11
The Centre has exempted several higher ethanol-blended petrol variants from excise duty in a move aimed at encouraging the adoption of cleaner fuels and boosting the use of biofuels in the transportation sector. The decision was announced through a notification issued by the Finance Ministry.
Under the revised policy, excise duty has been reduced to nil on E22, E25, E27, and E30 petrol variants. These fuels contain 22 percent, 25 percent, 27 percent, and 30 percent ethanol, respectively.
Officials said the measure is intended to promote the use of ethanol-blended petrol among consumers and support the government’s broader push towards cleaner and more sustainable energy alternatives.
The decision comes amid a recent increase in fuel prices, with petrol and diesel rates rising by nearly ₹7.50 per litre during the second half of May.
The latest relief follows an earlier intervention by the Centre in March, when excise duty on petrol and diesel was reduced by ₹10 per litre. That move resulted in an estimated annual revenue sacrifice of more than ₹1 lakh crore and was aimed at protecting domestic consumers from the impact of rising global crude oil prices linked to the ongoing conflict in West Asia.
With the latest exemption, the government is expected to further encourage the use of ethanol blended fuels while advancing its long-term objectives of reducing dependence on conventional fossil fuels and strengthening energy security.
