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[BUSINESS] · India · 2 sources

India removes excise duty on E85 fuel as petrol‑diesel prices surge

The Modi government has eliminated the excise duty on E85 fuel, an ethanol‑rich blend containing 80‑85% ethanol and 14‑19% petrol. The launch began at 48 public‑sector stations, with plans to expand to 500 stations by December 2026 and around 5,000 by December 2027. E85 is priced about ₹20 per litre cheaper than regular petrol, though the duty removal does not affect the price of standard gasoline.

Meanwhile, petrol and diesel prices across India remained steady on 10 June after several earlier hikes driven by the Middle‑East conflict that pushed global crude prices up. The rise has sparked protests in Kalaburagi, where Congress activists demanded an immediate rollback of the higher fuel costs, accusing the central government of burdening poor families.

Both developments highlight the government's attempt to ease fuel costs for consumers while grappling with external price pressures.