India expands ethanol‑petrol blends, exempts higher blends from excise duty

The Indian government has exempted petrol blends containing 22 % to 30 % ethanol (E22‑E30) from central excise duty, extending the ethanol programme that achieved the 20 % blend (E20) a year earlier than its target. The policy aims to increase domestic bio‑fuel use, cut reliance on imported crude oil and stabilise fuel prices. Official estimates say the blending programme has saved roughly Rs 1.6 lakh crore in foreign‑exchange, substituted about 280 lakh metric tonnes of crude oil and avoided 851 lakh tonnes of CO₂ emissions, while supporting rural incomes.

Industry groups warn that higher ethanol blends can cause engine wear, reduced mileage (5‑12 % drop reported by some owners) and ignition problems, especially for older cars and two‑wheelers not designed for such fuels. The petroleum ministry contends that these concerns lack scientific backing. The move follows recent global oil‑price spikes linked to the Iran‑Houthi conflict, which have driven up domestic petrol and diesel rates. Energy minister Hardeep Singh Puri reiterated that India's overall crude, LPG and gas supplies remain comfortable, with LPG stocks covering 75‑80 days of demand.