New Delhi, 11 June (H.S.): The Central Government has completely removed excise duty on ethanol-blended petrol. The exemption will apply to E22, E25, E27 and E30 petrol variants, which contain ethanol blends ranging from 22 percent to 30 percent.

The Ministry of Finance, in a notification issued on Wednesday, announced that petrol blended with 22 percent to 30 percent ethanol will be fully exempt from excise duty. According to the notification, the excise duty rate on E22, E25, E27 and E30 fuel grades has been reduced to zero.

The move is aimed at encouraging consumers to adopt ethanol-blended fuels, which are considered a cleaner and more sustainable alternative to conventional petrol. The decision comes after public sector oil and gas marketing companies increased petrol and diesel prices by approximately ₹7.50 per litre during the second fortnight of May.

The government stated that the excise duty exemption is intended to promote the use of ethanol-blended petrol while supporting the country's broader objectives of reducing dependence on imported crude oil and advancing cleaner energy solutions.

Earlier, in March, the Central Government reduced excise duty on petrol and diesel by ₹10 per litre. That measure resulted in an annual revenue loss of more than ₹1 lakh crore for the exchequer. The duty cut was introduced to shield domestic consumers from the impact of rising global crude oil prices amid the ongoing crisis in West Asia.

Officials said the latest tax relief reflects the government's continued focus on balancing consumer interests with long-term energy security and environmental sustainability goals.

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Hindusthan Samachar / Jun Sarkar