Overview
- The government has exempted central excise duty on petrol blended with 22%, 25%, 27% and 30% ethanol, creating a fiscal incentive for higher ethanol use.
- Bureau of Indian Standards issued fuel-quality specifications for E22–E30 in May 2026, giving regulators and suppliers the technical framework needed for future rollout.
- The excise waiver is conditional on meeting BIS standards and removes a tax overlap on the blending step while petrol and ethanol continue to attract existing levies separately.
- Higher blends are not yet sold at retail and will require automaker validation, durability testing and oil-marketing company readiness before pumps carry them, a process industry sources estimate could take three to six months.
- Most vehicles on Indian roads are certified only up to E20, so running E22–E30 in uncertified cars could cut mileage, harm fuel-system parts and risk warranty issues; early benefits will mainly flow to ethanol producers and refiners rather than drivers.