Higher Ethanol Blended Petrol E22, E25, E27 and E30 Exempted From Central Excise Duty: Will It Make Fuel Cheaper?
The Indian government has extended central excise duty exemptions to petrol blended with 22%, 25%, 27%, and 30% ethanol. Eligible blends meeting BIS standards will attract nil excise duty. The move aims to boost ethanol adoption, reduce crude oil imports, support sugarcane farmers, enhance energy security, and promote cleaner, more sustainable fuel alternatives across India.
The Indian government has extended central excise duty exemptions to petrol blended with 22 percent, 25 percent, 27 percent, and 30 percent ethanol. Blends meeting Bureau of Indian Standards specifications will attract nil excise duty, providing a significant boost to the country’s ethanol blending programme. One of the biggest consumer questions around ethanol blended fuel has been pricing. Many motorists assume ethanol blended petrol should cost less than conventional fuel. However, government data has shown that ethanol is not necessarily cheaper. Last year, the petroleum ministry noted the weighted average procurement cost of ethanol had become higher than refined petrol. As of July 31 2025, the average procurement cost of ethanol for ESY 2024 25 stood at Rs 71.32 per litre, including transportation and GST. This reality has complicated arguments for lower retail prices despite higher blending levels. The extension aims to promote greater adoption of ethanol blends, reduce reliance on imported crude oil, support sugarcane farmers, and advance environmental goals through cleaner, more sustainable fuel alternatives. It is expected to encourage oil companies to scale up higher blends, strengthening India’s energy security and green mobility efforts in the long term. Which Cars and Bikes Can Run on Cheaper E85 Petrol, Which Has 85% Ethanol?.
Government Cuts Central Excise Duty to ‘Nil’ on 22% to 30% Ethanol-Blended Fuel
The government has extended central excise duty exemptions to petrol blended with 22%, 25%, 27% and 30% ethanol. There will be a nil excise duty rate for fuel blends that conform to BIS standards. pic.twitter.com/LM0XfHXLk1
— ANI (@ANI) June 11, 2026
(SocialLY brings you all the latest breaking news, fact checks and information from social media world, including Twitter (X), Instagram and Youtube. The above post contains publicly available embedded media, directly from the user's social media account and the views appearing in the social media post do not reflect the opinions of LatestLY.)
(The above story first appeared on LatestLY on Jun 11, 2026 09:33 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
