Govt Waives Excise Duty on Ethanol-Blended Petrol

The finance ministry said the duty will be nil on E22, E25, E27 and E30 variants to encourage greater use of ethanol-blended fuel.

Govt Cuts Excise Duty On Petrol, Diesel
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  • The excise duty waiver applies to petrol with 22%, 25%, 27% and 30% ethanol blend.

  • The move is meant to push consumers toward ethanol-blended petrol.

  • It comes after petrol and diesel prices rose by nearly ₹7.50 a litre in the second half of May.

The government has waived excise duty on variants of ethanol-blended petrol, a notification by the finance ministry said.

The duty waiver is applicable on E22, E25, E27 and E30 variants of petrol.

In the notification, the ministry said excise duty will be 'nil' on petrol with 22%, 25%, 27% and 30% ethanol blend.

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The excise duty waiver is aimed encouraging customers to move towards ethanol-blended petrol.

The move come against the backdrop of petrol and diesel prices rising by nearly ₹7.50 a litre in the second half of May.

The government had in March cut excise duty on petrol and diesel by ₹10/litre, foregoing over ₹1 lakh crore of annual revenue. This was aimed at shielding domestic customers from the surge in global crude oil prices amid the West Asia war. 

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