Wednesday, October 14, 2026

E22, E25, E27 and E30 Fuels Exempted From Double Excise Duty, Here’s The Reason

The central government of India has announced exemption of the excise duty on the higher ethanol blended fuels beyond E20, such as E22, E25, E27 and E30. This is actually an extension of the benefit already given to E20 fuel. Though these higher ethanol-concentrated fuels are not available for sale at regular fuel stations, their standards have already been set by the Bureau of Indian Standards (BIS).

Reason Behind The Excise Duty Exemption

Well, the excise duty has been exempted only on the ethanol portion, not on the complete fuel. Let’s understand this in simple terms: –

  • Petrol bears excise duty+VAT, and ethanol bears GST at their respective stages. And, when ethanol is blended with petrol, which falls into a manufacturing category, it can again be subjected to excise duty.
  • Now, to reduce this complex structure of varied taxes, the government has decided to eliminate the excise duty on the blended fuel to avoid double levy of excise duty on ethanol-blended petrol and keep its prices in check.

Related: Gaadify Opinion – Things Needed To Be Done Before The Introduction of E25/E30 Petrol

excise duty on E25 petrol in india

Rolled Out Not Anytime Soon

Given the previous public outrage around the E20 blended fuel, the government is playing it safe this time. A few weeks ago, they notified ARAI to conduct thorough research on the impact of E25 fuel on older E10 and E20-compliant vehicles. And now, they have again stated that the rollout of higher blends will only be done after extensive testing and consultation.

Ethanol-blending Stats You Should Know

In its press release, the central government asserted that the aim of the Ethanol Blended Petrol (EBP) Programme is to reduce our dependence on crude oil, save on foreign exchange, related environmental benefits and boost the domestic agriculture sector. The government has also revealed that the ethanol blending by oil marketing companies has been increased from 1.53% in ESY 2014-15 to 20% in ESY 2025-26.

This has resulted in expeditious payment to farmers to the tune of Rs 1.62 lakh crore, foreign exchange savings of more than 1.91 lakh crore, net CO2 reduction of approximately 931 lakh metric tonnes, and crude oil substitutions of about 310 lakh metric tonnes.

Ban diesel cars

Diesel Isobutanol Blending Under Consideration

Aside from increasing ethanol blending in petrol, the government is also considering isobutanol (a type of alcohol-based fuel) blending in diesel to reduce emissions and dependence on fossil fuels. This development is currently in an early stage and may take final shape in the near future.

Car News

Stellantis and Tata Motors Expand Strategic Partnership For Advanced Technology and New Products

0
Stellantis India, Tata Motors Passenger Vehicles Limited (TMPV) and its subsidiary Tata Passenger Electric Mobility Limited (TPEM) have announced the signing of a Definitive...
Honda Elevate facelift variants

2026 Honda Elevate Facelift: What Does Each Variant Get?

0
The 2026 Honda Elevate facelift has recently been launched in India, with prices starting from Rs 11.80 lakh (ex-showroom). The upgraded SUV is available...
Toyota Fortuner Leader Edition price in India

2026 Toyota Fortuner Leader Edition Launched at Rs 36.51 Lakh

0
Toyota has launched the 2026 Fortuner Leader Edition at Rs 36.51 lakh for the manual and Rs 38.72 lakh (both prices, ex-showroom) for the...

MG Hector Blackstorm and Snowstorm Editions Back On Sale; Prices Start from Rs 19.99 Lakh

0
JSW MG Motor India has brought back the Hector Blackstorm and Snowstorm Editions on sale, with prices starting from Rs 19.99 lakh (ex-showroom). They...

Related Articles

Stellantis and Tata Motors Expand Strategic Partnership For Advanced Technology and New Products

Stellantis India, Tata Motors Passenger Vehicles Limited (TMPV) and its subsidiary Tata Passenger Electric Mobility Limited (TPEM) have announced the signing of a Definitive...

MG Windsor EV Indulge Edition Launched At Rs 17.89 Lakh

To benefit from the festive season, JSW MG Motors India has launched the Windsor EV Indulge Edition at Rs 17.89 lakh (ex-showroom), featuring a...

Hyundai Bayon Revealed; Launch On October 26

Hyundai India has finally taken the wraps off the all-new Bayon SUV ahead of its launch on October 26, 2026. The upcoming SUV will...

Royal Enfield Himalayan Base Camp 2026: Riding Through Ladakh’s Moonland

Some motorcycle rides stay with you because of the roads, others because of the landscapes, and a few because of the people you meet...

2026 Toyota Fortuner Leader Edition Launched at Rs 36.51 Lakh

Toyota has launched the 2026 Fortuner Leader Edition at Rs 36.51 lakh for the manual and Rs 38.72 lakh (both prices, ex-showroom) for the...