The Indian government has exempted excise duty on up to 30% ethanol component in blended petrol, which may reduce the country's energy imports and improve margins of stressed fuel retailers.
The exemption is applicable for four variants of ethanol-blended petrol (EBP) – 22% ethanol with 78% petrol (E22), 25% (E25), 27% (E27), and 30% (E30) – subject to conformity to quality standards specified by the Bureau of Indian Standards (BIS).
Experts believe that the move strengthens India's clean energy transition efforts, removes tax cascading, reduces crude oil consumption, supports flex-fuel adoption, and promotes a shift towards sustainable fuel consumption.
