Lagatar24 Desk
New Delhi: Amid rising petrol and diesel prices, the central government has announced a significant relief measure by completely eliminating excise duty on ethanol-blended petrol, a move expected to make fuel cheaper for consumers and ease the burden on household budgets.
Duty Waiver Applicable on E22, E25, E27 and E30 Variants
According to a Finance Ministry notification, the excise duty exemption has been applied to multiple variants of ethanol-blended petrol, specifically the E22, E25, E27, and E30 categories. The removal of this indirect tax is expected to result in lower prices for ethanol-mixed petrol in the market.
Crude Oil at $114 Per Barrel Drives Decision
International crude oil prices have surged to around $114 per barrel, and India imports approximately 85 percent of its oil requirements. This puts significant pressure on the country’s foreign exchange reserves and weakens the rupee. Experts say the government’s push for alternative fuels like ethanol is aimed at reducing the massive import bill and building energy self-reliance.
E85 Fuel Now Available, Already Cheaper Than E20
While India had previously been focused on E20 petrol containing 20 percent ethanol, E85 fuel — comprising 85 percent ethanol and only 15 percent petrol — has now been launched in the market. According to reports, E85 fuel is already around Rs 20 per litre cheaper than the currently available E20 petrol, and the price gap is expected to widen further following the excise duty removal.
