Union Government Reduces Excise Duty On Higher Ethanol-Blended Petrol
New Delhi: The Central government has cut the excise duty on petrol blended with a greater quantum of ethanol, following the implementation of E20 petrol. The reduction in the levy of the central excise duty will be given only to the petrol blended with ethanol at 22 % to 30 % as per the report by The Hindu.
The move aims to popularise the use of ethanol-blended petrol in the country, reducing the dependency on the imported oil, and making use of the country’s biofuels. The Bureau of Indian Standards (BIS) notified the fuel standards for blends on May 19 this year.
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The government has exempted the excise duty on E22, E25, E27 and E30 fuels after approving higher ethanol-blend standards, pushing beyond the E20 ethanol programme. The development has raised concerns among the vehicle owners of the potential mileage drops and engine glitches.
E22 fuel will comprise 78% petrol and 22% ethanol, while E25, E27 and E30 fuels will contain 25%, 27% and 30% ethanol respectively, significantly reducing the amount of petrol in the fuel.
Read Also: Pan-India Sale Of 20% Ethanol-Blended Petrol With Minimum RON 95 From April 1
India achieved its target of 20% ethanol blending in petrol ahead of schedule and is exploring higher blending levels to reduce crude oil imports and boost demand for domestically produced biofuels.
