Exemption from Excise Duty on High-Ethanol Blend Petrol Welcomed

13-Jun-2026 12:47 PM

New Delhi: The All India Distillers Association (AIDA) has welcomed the government's decision to exempt petrol blended with high levels of ethanol—specifically 22%, 25%, 27%, and 30%—from excise duty.

The Association stated that this move would significantly boost the biofuel sector and help reduce the import of mineral oil (petroleum), thereby saving foreign exchange.

According to the Association, after achieving the target of 20% ethanol blending in petrol, the industry was looking to the government for the next milestone, and the government did not disappoint. The path ahead is now clear.

This government policy will encourage new capital investment to expand ethanol production capacity in the country and benefit farmers through increased demand and consumption of agricultural produce such as sugarcane, maize, and rice. Simultaneously, the country's dependence on crude oil imports will decrease.

The Association believes this progressive step by the government will prove beneficial for the biofuel sector. Future targets for ethanol blending in petrol could be raised even further; notably, Indonesia is currently using a 40% palm oil blend in petrol, a figure set to rise to 50% starting next month.