New Delhi (Rajeev Sharma): In a significant policy step aimed at strengthening India’s biofuel programme, the Central Government has announced central excise duty exemptions for several higher ethanol-petrol blends, paving the way for wider use of cleaner transportation fuels.
As per a notification issued by the Ministry of Finance, petrol blended with 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol will now attract nil central excise duty, subject to compliance with the quality standards prescribed by the Bureau of Indian Standards (BIS).
The notification expands the existing framework for ethanol-blended fuels by adding new categories eligible for tax relief. The exemption applies only when the required excise duties and applicable taxes on both petrol and ethanol components have already been paid and the final product conforms to BIS specifications.
The decision is expected to encourage oil marketing companies and fuel suppliers to introduce higher ethanol blends on a larger scale, supporting the government’s efforts to reduce dependence on imported crude oil and increase the use of domestically produced renewable fuels.
Experts believe the move could provide a fresh boost to the ethanol economy, benefiting sugar mills, distilleries and farmers engaged in feedstock production while contributing to lower greenhouse gas emissions.
The policy also aligns with India’s long-term objective of expanding ethanol blending in the transport sector as part of its clean energy and carbon reduction strategy. By incentivising higher ethanol content through tax exemptions, the government aims to promote sustainable mobility without compromising fuel quality standards.
The latest amendment reflects the Centre’s continued focus on encouraging alternative fuels and advancing the country’s transition towards a greener and more energy-secure future.
