In a major policy move aimed at accelerating India’s ethanol blending programme and reducing dependence on imported fossil fuels, the Central Government has extended excise duty exemptions and related tax concessions to higher ethanol-blended petrol variants containing 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol.The Ministry of Finance, Department of Revenue, issued a series of notifications on June 10, amending existing Central Excise notifications to bring higher ethanol blends under the ambit of concessional duty treatment.What is the move?According to the notifications, ethanol-blended petrol containing 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol by volume will be eligible for nil central excise duty under specified conditions. The fuel blends must conform to Bureau of Indian Standards (BIS) Specification IS 19850 and comprise the prescribed proportion of motor spirit (petrol) and ethanol on which applicable taxes and duties have already been paid.Scope of moveThe move expands the existing framework that had earlier covered lower ethanol blending levels and is expected to facilitate the gradual introduction of E22, E25, E27 and E30 fuels in the country.Under the revised provisions, E22 fuel will consist of 78 per cent petrol and 22 per cent ethanol, E25 will contain 75 per cent petrol and 25 per cent ethanol, E27 will comprise 73 per cent petrol and 27 per cent ethanol, while E30 fuel will contain 70 per cent petrol and 30 per cent ethanol.Tax law changed tooThe government has simultaneously amended notifications relating to special additional excise duty and road and infrastructure cess, effectively ensuring that these higher ethanol blends receive the same tax treatment as existing ethanol-blended petrol categories.ImportanceOfficials said the decision is aligned with India’s broader strategy to promote cleaner transportation fuels, support domestic ethanol production, reduce crude oil imports and provide additional market opportunities for sugar mills and grain-based ethanol producers.The notification comes at a time when India has been steadily increasing ethanol blending in petrol under the National Biofuel Policy and has emerged as one of the world’s fastest-growing ethanol blending programmes. Higher blending levels are expected to contribute to lower carbon emissions, improve energy security and strengthen the rural economy through increased demand for agricultural feedstock.Experts speakIndustry observers believe the move provides a clear regulatory framework for the rollout of higher ethanol blends and signals the government’s intent to move beyond the current blending levels towards next-generation ethanol-based fuel standards. Consumers may have to pay less if oil marketing firms pass the excise cut benefits.