According to the government of India, petrol with an ethanol blend of 22% to 30% has been exempted from central excise duty, aiming to popularize the use of biofuel in the country. This decision, made late on Wednesday, June 10, 2026, applies to petrol mixed with ethanol in the specified proportions.
The Bureau of Indian Standards (BIS) reported that it had approved standards for these blends as early as May 19 this year. However, despite the new standards and tax exemptions, petrol blends containing 22-30% ethanol are currently not commercially available.
Objectives and New Standards
The new standard follows the achievement of 20% ethanol blending under the Ethanol Blended Petrol (EBP) program. According to a BIS statement on social media, it aims to promote more environmentally friendly transportation, increase energy security, reduce crude oil imports, and support the agricultural sector.
Launch of E85 and Savings
The official announcement of the excise exemption came a few days after India officially launched the E85 petrol variant. This variant, consisting of 85% ethanol and 15% petrol, was introduced on June 5 and is approximately 20 rupees per liter cheaper than the regular E20 variant.
Source: The Hindu