India exempts E22-E30 petrol from central excise duty

The Indian government has exempted petrol blended with higher levels of ethanol from central excise duty, a move aimed at accelerating the adoption of biofuels and reducing the country's reliance on imported crude oil. Official notifications issued late Wednesday by the Department of Revenue removed the levy for petrol containing 22, 25, 27, and 30 percent ethanol, known as E22, E25, E27, and E30 blends.

The tax exemption follows the Bureau of Indian Standards formally approving fuel specifications for these higher blends in May. These blends are not yet commercially available, but the policy change is intended to make them more economically viable for producers and pave the way for their eventual introduction at retail fuel stations. The decision represents a strategic push beyond the current nationwide standard of E20 petrol, which India achieved ahead of its original schedule.

India, the world's third-largest oil importer and consumer, has rapidly expanded its ethanol blending program over the past decade as part of a broader energy security strategy. The program has saved substantial foreign exchange and reduced crude oil imports by utilizing domestically produced ethanol,...