• Source:JND

Will E22 Petrol Be Cheaper:  The Union Government has scrapped excise duty on petrol blended with higher levels of ethanol. As per a government notification, petrol with ethanol levels of 22 to 30 per cent will not attract excise duty. With this move, the government has extended tax support beyond the current E20 blended petrol. Let’s take a look at what the exemption of excise duty on higher ethanol blends means for you.

Government Waives Excise Duty On Petrol

It is worth mentioning that the government had slashed excise duty on petrol and diesel by Rs 10 in March 2026. The move was aimed at mitigating the effects of increasing crude oil prices on the vehicle owners in the country. Now, the government has exempted ethanol fuel with E22, E25, E27, and E30 ratings from excise duty. Notably, it is also the first major fiscal benefit announced for ethanol-blended fuel above E20.

Also Read: Govt Eyes Isobutanol-Diesel Blend: Why Ethanol Is Out And How It Works?

Tax Exemption On Ethanol Blends: What It Means For You?

The Bureau of Indian Standards (BIS), under IS 19850:2026, notified regarding the fuel quality standards for E22, E25, E27, and E30 petrol blends. The new fuel standards came into effect from May 15, 2026, and they define everything, including safety requirements, sulphur limits, ethanol levels, and octane ratings. While the government had laid the technical framework needed for higher ethanol standards, it has now created the financial framework by exempting higher ethanol blends from excise duty. In simpler words, this means the government is all set to roll out higher-ethanol-blended petrol in the country soon. Additionally, the government has recently launched E85 petrol in India, and now it is laying down the groundwork for E22, E25, E27, and E30 petrol blends.

Also Read: Ultraviolette F77 Becomes First Indian Motorcycle To Complete Isle Of Man TT Lap; Check Range And Specs

Indian Government’s Big Ethanol Push

The Indian government is pushing heavily on ethanol-blended petrol to reduce its dependence on crude oil imports, support the agricultural economy, and halt the depletion of foreign reserves. Notably, the country imports more than 85 per cent of its fuel needs, which results in depleting forex and heavy dependence on global crude oil prices.

Also Read: Does E20 Fuel Damage Engines Or Reduce Mileage? All Details Explained

Will E22 Petrol Be Cheaper?

While the government has announced a nil excise duty for petrol blended with higher ethanol levels, the move is highly unlikely to translate into cheaper fuel at petrol stations right away. It is important to understand that the government has waived off higher ethanol blends from excise duty to absorb the production costs. As global crude oil prices are skyrocketing at the time, the move will likely end up absorbing the higher costs. For consumers, a reduction in fuel prices will likely follow in the coming months, as recently shared by Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri.


Also In News