Industry Odisha Bureau, Jun 11: In a bid to prop up the country’s target to enhance the use of ethanol in petrol as well as augment the commercial viability of high-blend ethanol fuels for the Oil Marketing Companies (OMCs), the Department of Revenue under the Ministry of Finance, Government of India (GoI) has reportedly issued notifications exempting all central excise duties levied on petrol blended with ‘E22’, ‘E25’, ‘E27’, and ‘E30’ by reportedly amending the existing Excise Rules of 2002 and 2017.
Reportedly, this facility was in force earlier “only for lower ethanol-blended fuels,” while India has reportedly “set a target of achieving ‘E30’ – 30% ethanol blending in petrol”.
As per the experts, such a move by the GoI is expected to “benefit the the sugar companies producing adequate ethanol”. But, on the contrary, surveys reveal “grave concerns among the consumers owing to the outcomes of ‘fuel efficiency’, ‘vehicle compatibility’ and ‘higher maintenance costs. After all, high ethanol-blended fuel needs a flex-fuel engine facility in one’s vehicle which is not present in the vehicles already purchased by the consumers.
Notably, “Flex-Fuel Vehicles (FFVs) are designed to operate on a blend of petrol and ethanol, such as ‘E20’ (20% of ethanol) and ‘E85’ (85% of ethanol). The FFVs are equipped with specialized equipment to handle high ethanol fuel blends, ensuring optimal performance and efficiency. As of 2026, India has rolled out ‘E20’ mandate, and draft rules for ‘E85’ fuel are being developed. FFVs are not only a practical solution to rising fuel prices and crude oil dependency, but also a key component in India’s green transition towards sustainable mobility.”
