Centre waives excise duty on ethanol-blended petrol
What's the story
The Indian government has waived the excise duty on certain types of ethanol-blended petrol. The exemption applies to E22, E25, E27 and E30 fuel blends. These blends are made up of different proportions of petrol and ethanol. The move is part of a larger strategy by the government to promote the use of ethanol in fuels.
Expansion strategy
Government to open 500 ethanol fuel stations
The Indian government plans to open 50-100 ethanol fuel stations in Delhi-NCR, Pune, Mumbai and Nagpur. The network will be expanded to 500 stations by the end of 2026. This is part of a larger push toward cleaner fuels and reducing dependence on fossil fuels. The move comes as petrol and diesel prices have increased by over ₹7.5 per liter since the West Asia crisis began.
Fuel pricing
₹20 per liter discount on E85 fuel
Hardeep Singh Puri, Union Minister of Petroleum and Natural Gas, had earlier said that state-run oil marketing companies are preparing to offer E85 fuel at a ₹20 per liter discount compared to E20 petrol. The discount is aimed at compensating for the lower energy content of this fuel blend. Ethanol has about one-third lower energy content than petrol, which is why the price reduction has been introduced.
Fuel availability
E20 petrol will continue to be available
E20 petrol, which is 20% ethanol and 80% petrol, will continue to be available at all fuel stations. This is because most vehicles on Indian roads can run on ethanol blends up to 20%. The government had earlier reduced excise duty on domestic petrol and diesel by ₹10 per liter each in a bid to shield consumers from rising international oil prices.