The Indian government has waived excise duty on petrol blended with higher levels of ethanol, according to the government notification.
The finance ministry has exempted 22%, 25%, 27%, and 30% ethanol-blended petrol (E22, E25, E27 and E30) from central excise duty, extending tax benefits beyond the existing ethanol-blending regime.
The government inserted four new categories under the Central Excise notification:
22% ethanol-blended petrol (E22) – 78% petrol + 22% ethanol
25% ethanol-blended petrol (E25) – 75% petrol + 25% ethanol
27% ethanol-blended petrol (E27) – 73% petrol + 27% ethanol
30% ethanol-blended petrol (E30) – 70% petrol + 30% ethanol
All four categories have been assigned a ‘Nil’ excise duty rate.
