Higher ethanol blended petrol between 22-30% exempted from central excise duty
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500+ questions on Environment with explanations
📌 Summary:
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The government (late June 10, 2026) exempted central excise duty on petrol blended with higher ethanol content — i.e. blends of 22%, 25%, 27% and 30%.
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The aim is to popularise the uptake of biofuels and push beyond the existing E20 (20% ethanol) milestone.
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Excise exemption lowers the effective cost of high-ethanol blends, incentivising oil marketing companies and consumers to adopt them.
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Higher ethanol blending cuts crude-oil import dependence, supports farm incomes (sugarcane, maize, surplus grain) and reduces vehicular emissions of certain pollutants.
🎯 UPSC Relevance: GS3 (energy security, renewable/biofuels, environment, agriculture-energy linkage) — connects India's Ethanol Blending Programme to import substitution, farmer income and emissions.
📝 Prelims Facts:
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India achieved the 20% ethanol blending (E20) target ahead of its original 2030 timeline.
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Ethanol is produced from sugarcane (and its by-products like molasses), maize and surplus foodgrains.
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The Ethanol Blended Petrol (EBP) Programme is run under the Ministry of Petroleum and Natural Gas.
🔑 Key Term: Ethanol Blending Programme — a government scheme to blend ethanol with petrol to cut oil imports, support farmers and reduce emissions.
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