India waives excise duty on high‑ethanol petrol blends

The Indian government has exempted petrol blended with 22 %, 25 %, 27 % and 30 % ethanol from excise duty, setting the tax to nil for these blends (E22, E25, E27, E30) under the Central Excise Act. The measure aims to encourage the use of ethanol‑blended fuel as part of the country's biofuel policy, which seeks to reduce crude‑oil imports and boost domestic renewable fuel production.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri noted that ethanol’s share in petrol rose from 1.5 % in 2014 to 10 % in June 2022, and that the 20 % blending target slated for 2030 was achieved early in 2024. The duty waiver comes amid rising fuel prices, following a March excise‑duty cut of ₹10 per litre on petrol and diesel that forwent over ₹1 lakh crore in annual revenue.

The policy move is expected to lower pump prices for consumers while supporting India's broader goal of expanding ethanol use in the transport sector.