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Centre exempts higher ethanol blends from duty
NDTV··12 Jun
The government exempted ethanol-blended petrol grades E22, E25, E27 and E30 from central excise duty to avoid double taxation. The exemption applies when excise duty has already been paid on petrol and GST has been paid on ethanol used for blending.
Prism
What It Means For You
- The duty exemption is mainly a tax-structure change, not a sign that higher ethanol petrol will appear at pumps immediately.
- Avoiding double taxation can make future higher-blend fuel implementation simpler if testing clears it.
- Vehicle compatibility, mileage, warranty and fuel availability will matter to consumers if blends above E20 are introduced.
What's Happening
- CBIC exempted E22, E25, E27 and E30 ethanol-blended petrol from central excise duty under conditions.
- Officials said the aim is to avoid double taxation on blended fuel.
- The government said rollout of higher blends would happen only after testing and consultation.
Ethanol Policy Path
- India has raised ethanol blending from 1.53 percent in 2014-15 to 20 percent in 2025-26.
- Ethanol blending is used to reduce crude imports, emissions and support farm-linked ethanol supply chains.
- Higher blends require standards, tax clarity, fuel logistics and engine compatibility planning.
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