Good News for Fuel Consumers: Government Removes Excise Duty on Ethanol-Blended Petrol

In a major relief for petrol consumers, the government has removed excise duty on ethanol-blended petrol containing 22% to 30% ethanol. The decision is expected to provide benefits not only to customers but also to farmers, while boosting India’s efforts to reduce dependence on imported crude oil.

Under the new policy, petrol blended with 22% to 30% ethanol will no longer attract excise duty, making cleaner fuel alternatives more attractive and potentially cost-effective for consumers.

The move comes as India intensifies efforts to promote the use of ethanol as part of its long-term energy strategy. Ethanol, a biofuel produced mainly from agricultural products such as sugarcane and maize, is considered a cleaner alternative to conventional fossil fuels.

The government’s decision is also expected to benefit farmers by increasing demand for crops used in ethanol production, thereby creating additional income opportunities in the agriculture sector.

India, one of the world’s largest oil importers and consumers, has been actively promoting ethanol blending in fuel to reduce import dependency, lower carbon emissions, and strengthen energy security.

Experts believe the exemption of excise duty on higher ethanol-blended petrol could accelerate the country’s transition toward sustainable fuel alternatives while offering economic advantages to both consumers and agricultural producers.

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