Overview
- The finance ministry on June 10 exempted central excise duty for petrol blended with 22–30% ethanol, a relief that applies only if the fuels meet Bureau of Indian Standards specifications.
- The Bureau of Indian Standards has already issued E22–E30 fuel-quality rules, creating the technical benchmark suppliers must follow before higher blends are sold.
- Union Road Transport Minister Nitin Gadkari said Saturday he signed regulations to legally authorise E100 and E85 pathways, opening a legal route for flex-fuel vehicles and new vehicle approvals.
- Higher blends are not yet available at pumps because oil companies and automakers must complete months of testing, vehicle certification and infrastructure changes for storage and dispensing.
- Officials and industry groups say the measures will raise domestic ethanol demand and cut import bills but may lower mileage, pose compatibility risks for many existing vehicles, and first benefit ethanol producers and fuel suppliers rather than motorists.