India scraps excise duty on 22 % to 30 % ethanol blended petrol: Key details

PTC News Desk: India has removed excise duty on petrol blended with higher amounts of ethanol, giving a boost to its efforts to use more alternative fuels and reduce reliance on imported crude oil.

According to a government notification issued on Wednesday, petrol containing 22% to 30% ethanol will no longer attract excise duty.

What does the excise duty exemption mean?

Excise duty is a tax charged by the government on products such as fuel. By removing this tax on petrol with higher ethanol content, the government is making these fuel blends cheaper and more attractive for manufacturers and suppliers.

The exemption applies to petrol that contains between 22% and 30% ethanol.

While there is no immediate change for regular petrol sold at fuel stations, the move is expected to encourage the production and availability of higher ethanol-blended fuels in the future.

Why is India promoting ethanol-blended petrol?

India imports a large portion of the crude oil it consumes. Using more ethanol, which is produced within the country from crops such as sugarcane and grains, helps reduce dependence on imported oil and protects the economy from fluctuations in global oil prices.

The ethanol blending programme also provides farmers with an additional market for their crops and supports the country's goal of strengthening energy security.

Over the past decade, India has significantly increased the amount of ethanol mixed with petrol as part of its efforts to lower oil imports and promote cleaner, more sustainable fuels.