In an attempt to popularize the uptake of biofuels in the country, the centre on late Wednesday exempted the levy of central excise duty on petrol blended with greater quantum of ethanol, that is 22% to 30%.
In a set of notifications, the govt announcement read- “petrol containing 22 per cent to 30 per cent ethanol will not attract excise duty. The exemption covers fuel variants such as E22, E25, E27 and E30, marking the first major fiscal incentive for ethanol blends above E20.”
The Bureau of Indian Standards (BIS) in a formal notice maintained that the fuel-quality standards for E22, E25, E27 and E30 petrol blends under IS 19850:2026. The standards, which came into effect on May 15, 2026, define everything from ethanol content and octane ratings to sulphur limits, testing procedures and safety requirements.
Together, the BIS notification and the excise-duty exemption create both the technical and financial framework needed for wider adoption of higher ethanol blends in the future.
The decision comes as India steadily expands its biofuel program to reduce dependence on imported crude oil and promote cleaner, domestically produced energy. India formally launched the E85 variant of petrol, that is 85% ethanol blended with 15% gasoline, on June 5.
India has already achieved its target of 20% ethanol blending in petrol ahead of schedule and is exploring higher blending levels to reduce crude oil imports affected by the West Asia conflicts.
E85 is about ₹20 per litre cheaper than the E20 variant of petrol, that is, the regular variant.