India, June 11 : India has exempted several ethanol blended petrol variants from excise duty, marking another step in its strategy to increase the use of biofuels and reduce dependence on conventional fossil fuels.
According to a notification issued by the Finance Ministry, the exemption applies to E22, E25, E27 and E30 fuel blends. These fuels contain different proportions of petrol and ethanol, ranging from 22 per cent to 30 per cent ethanol by volume.
The decision comes as the government accelerates efforts to expand ethanol-based mobility infrastructure. Plans are underway to establish between 50 and 100 dedicated ethanol fuel stations in Delhi-NCR, Mumbai, Pune and Nagpur, with the network expected to grow to around 500 outlets by the end of 2026.
Earlier, Petroleum Minister Hardeep Singh Puri had indicated that public sector oil retailers were preparing to introduce E85 fuel at a price lower than E20 petrol. The proposed pricing structure is intended to compensate motorists for ethanol’s lower energy density compared with conventional petrol.
E85 consists of 85 per cent ethanol and 15 per cent petrol, while E20 contains 20 per cent ethanol and 80 per cent petrol. E20 will continue to be available nationwide as it remains compatible with the majority of vehicles currently operating on Indian roads.
The policy shift coincides with rising fuel costs linked to disruptions in global energy markets. Crude oil prices have surged above $100 per barrel amid the continuing conflict in the Middle East, increasing pressure on fuel retailers and consumers alike.
Despite recent increases in retail fuel prices, state owned oil marketing companies continue to face significant losses on petrol and diesel sales due to elevated crude prices and supply uncertainties.