𝗜𝗻𝗱𝗶𝗮 𝗦𝗹𝗮𝘀𝗵𝗲𝘀 𝗘𝘅𝗰𝗶𝘀𝗲 𝗗𝘂𝘁𝘆 𝗢𝗻 𝗘𝘁𝗵𝗮𝗻𝗼𝗹 𝗕𝗹𝗲𝗻𝗱𝗲𝗱 𝗣𝗲𝘁𝗿𝗼𝗹

India has removed excise duty on ethanol blended petrol. The exemption applies to E22, E25, E27, and E30 fuel blends.

The finance ministry issued a notification. It states the blends contain the following:

The government plans to expand ethanol use. It will open 50 to 100 ethanol fuel stations in Delhi NCR, Pune, Mumbai, and Nagpur. The network will grow to 500 stations by the end of 2026.

State-run oil companies will offer E85 fuel at a discount of Rs 20 per litre compared with E20 petrol. E85 contains 85% ethanol and 15% petrol. Ethanol has about one-third less energy content than petrol. The discount compensates for this difference.

E20 petrol will remain at all fuel stations. Most vehicles in India support ethanol blends up to 20%.

Petrol and diesel prices have risen by over Rs 7.5 per litre since the Middle East crisis started. Prices had stayed flat for almost 4 years before this.

The conflict began on February 28 after the US and Israel launched joint strikes on Iran. Peace efforts continue. Global crude oil prices have risen from around $70 per barrel to above $100.

Oil marketing companies face large losses. They lose around Rs 12 per litre on petrol and Rs 21 per litre on diesel. These losses persist despite the retail price hikes.