Petrol To Get Cheaper? Government Waives Off Excise Duty On These Ethanol Fuel Blends!

The Ministry of Petroleum and Natural Gas, in its latest push towards advocating for faster adoption of flex-fuel vehicles, has now announced a waiver of excise duty for select fuel grades, which have stronger blends of ethanol. This move, expected to significantly slash prices at pumps, comes in the wake of recent geopolitical tensions that have raised global oil prices to record levels. But what does this mean for you and your vehicle? Here are all the details:

Excise Duty Slashed On Select Ethanol Fuel Blends

The Government of India has notified that it will exempt select BIS-certified flex fuel grades from excise duty. These include:

• E22 (22 percent Ethanol, 78 percent petrol)

• E25 (25 percent Ethanol, 75 percent petrol)

• E27 (27 percent Ethanol, 73 percent petrol)

• E30 (30 percent Ethanol, 70 percent petrol)

Do note that while these blends are not presently available for sale, you can expect to see a rollout soon enough, given the issuance of this notification and the increasing need to reduce import dependence and conserve fuel.

Push To Shift To Flex Fuel

In light of the global situation, authorities are pushing for greater adoption of alternative fuel sources such as EVs and flex-fuel vehicles. Maruti also became the first carmaker last week to launch a production flex fuel-powered car in India, in the form of a Wagon R that can run on up to E100 (100 percent ethanol) fuel. 

Furthermore, Indian Oil also opened the first E85 fuel pump in New Delhi, with prices set at Rs 82.12 per litre, which is a full Rs 20 cheaper per litre than the standard E20 grade petrol after the recent price hikes. The Ministry of Petroleum and Natural Gas also has plans to open up to 100 such ethanol fuel stations in major cities like Delhi-NCR, Pune, Mumbai and Nagpur soon, with a target network of 500 touchpoints by the end of 2026.

Flex Fuel: An Option, Not A Mandate

Own an E20-compatible car? No need to panic. The notification of these rules does not mean a plan to completely move away to flex fuel vehicles, and you can expect E20 fuel to continue as is for many more years to come. Furthermore, since most petrol vehicles on roads today can take only up to E20 fuel grade, the Ministry too has no plans as of now to stop its sale.

CarDekho Says…

Over the years, the boom of the Indian automotive industry has resulted in an increasingly massive demand for crude oil, making us the third largest importer of the commodity worldwide. With the geopolitical situation choking the global fuel market, it is imperative that we explore alternative fuels, alongside encouraging the adoption of EVs and other forms of sustainable mobility. 

However, flex fuel adoption in India needs to be voluntary and staged rather than sudden, as forcing consumers will only lead to dissent and taking older vehicles off the roads, which will result in sky-high transportation costs and may impact the economy in a big way.  

What are your thoughts on this move? Let us know in the comments below!