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Higher ethanol petrol blends E22 to E30 get tax exemption. Prices for these blends could be lower than E20 petrol. Maruti Wagon R Flex Fuel is ready for commercial use with high ethanol blends.
The Indian government has announced a central excise duty exemption on petrol blended with higher ethanol concentrations, including E22, E25, E27, and E30. This move could make these fuels cheaper than E20 petrol, which is currently priced at Rs 102.12 per litre in Delhi as of June 11.
Higher Ethanol Blends for Cleaner Fuel
The Bureau of Indian Standards (BIS) set the standards for these higher ethanol blends on May 19, although they are not yet widely available at fuel stations. The exemption aims to make the fuels more commercially viable for oil marketing companies and retailers once the supply chain is fully in place.
BIS noted that this step builds on the success of the E20 ethanol blending program and aims to promote cleaner transportation, reduce crude oil imports, enhance energy security, and support the agriculture sector.
Also Read: Upcoming Mid-Size SUVs Offer Electric, Hybrid, and Facelift Options
E85 Already Launched
This announcement comes shortly after the introduction of E85 fuel on June 5. E85 contains 85 percent ethanol and 15 percent petrol and is currently priced at Rs 82.12 per litre, making it Rs 20 cheaper than E20.
The government plans to initially set up around 50–100 E85 fuel stations across the Delhi-NCR and Mumbai-Pune-Nagpur corridor, with a goal of expanding to 500 stations by the end of the year.
Vehicles Must Be E85-Compliant
It’s important to note that vehicles designed for E20 petrol cannot run on higher ethanol blends like E85 without modifications. E85-compliant vehicles require additional engineering for engine calibration, fuel-system durability, corrosion resistance, and material compatibility.
Maruti Suzuki recently showcased the production-ready Wagon R Flex Fuel, which is capable of running on ethanol blends up to E85. For now, this model is available only for commercial use, and its price has not been announced.
Future Biofuel Plans
The government is also exploring the blending of isobutanol, a biofuel derived from ethanol, with diesel. This comes after earlier ethanol-diesel blending trials did not succeed.
With the new tax relief for E22 to E30 petrol, India is taking a significant step toward cleaner fuels, reduced fuel costs, and greater use of alternative energy, while supporting growth in the ethanol sector.
Also Read: Toyota Fortuner Rival Making a Comeback After 5 Years
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Konica Singh
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Konica Singh is a passionate Automotive Journalist who brings the world of cars to life, from EV trends to exciting new car launches. Backed by 7 years in content creation, she is skilled in writing, editing, and SEO strategy that drives engagement.
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