Overview
- The Finance Ministry issued notifications that exempt central excise duty on petrol blended with 22–30% ethanol, a change made public on June 10 and tied to conformity with BIS quality rules.
- The Bureau of Indian Standards has already published fuel specifications for E22, E25, E27 and E30, creating the technical framework needed before any retail rollout.
- Higher blends are not available at ordinary petrol stations today, and oil companies, automakers and regulators say staged testing and certification—industry estimates suggest three to six months—are required before pumps will offer these fuels.
- Most vehicles on Indian roads are certified only up to E20, so running E22–E30 in uncertified cars risks damage to fuel-system parts, may void warranties and will likely cut mileage (E22 is estimated to reduce fuel economy by about 4–5%).
- Policy aims include cutting crude imports and boosting domestic ethanol demand, with industry estimates that E22 could add roughly 120 crore litres and E25 about 300 crore litres of ethanol use, making phased pilots and flex‑fuel adoption central to next steps.