India Expands Excise Duty Exemption for Higher Ethanol-Blended Gasoline Grades

India has taken another step toward expanding the use of cleaner transport fuels by extending excise duty exemptions to gasoline blended with higher ethanol content. On June 10, the Department of Revenue under the Central Board of Indirect Taxes and Customs issued a notification covering multiple ethanol-blended gasoline grades. The measure is expected to support national fuel diversification efforts, reduce dependence on conventional fossil fuels, and encourage greater integration of biofuels into the transportation sector while supporting long-term sustainability goals.

The notification introduces excise duty exemptions for four specific gasoline blends with elevated ethanol concentrations. These grades include E22, E25, E27, and E30, reflecting the increasing role of ethanol in fuel composition. Higher ethanol blending can contribute to lower greenhouse gas emissions and strengthen domestic biofuel production ecosystems. The policy also aligns with broader efforts aimed at increasing renewable fuel usage across automotive applications and enhancing energy security through alternative fuel strategies.

Higher Ethanol-Blended Gasoline Grades Covered Under Exemption

The newly notified fuel grades define the proportion of gasoline and ethanol contained in each blend. These specifications provide clarity for fuel suppliers, refiners, and vehicle manufacturers as the market gradually transitions toward higher ethanol utilization. The inclusion of multiple grades offers flexibility in deployment and may help support future infrastructure and vehicle compatibility requirements across different segments of the transportation industry.

Composition of Ethanol-Blended Gasoline Grades

Table below summarizes the composition of the ethanol-blended gasoline grades covered under the excise duty exemption notification.

Ethanol-Blended Gasoline Composition Under Excise Duty Exemption

E22 ethanol-blended gasoline consists of 78% gasoline and 22% ethanol. E25 ethanol-blended gasoline consists of 75% gasoline and 25% ethanol. E27 ethanol-blended gasoline consists of 73% gasoline and 27% ethanol, while E30 ethanol-blended gasoline contains 70% gasoline and 30% ethanol. The structured introduction of these grades may help create a pathway for increased biofuel penetration and support future advancements in alternative fuel adoption across the mobility ecosystem.

Frequently Asked Questions

What does the new excise duty exemption for ethanol-blended gasoline cover?
The new excise duty exemption covers four higher ethanol-blended gasoline grades introduced through a government notification issued on June 10. The notification applies to E22, E25, E27, and E30 fuel blends, each containing different proportions of gasoline and ethanol. By extending exemptions to these grades, the policy aims to encourage wider ethanol adoption, support cleaner fuel usage, strengthen domestic biofuel production, and reduce dependence on conventional petroleum-based fuels in the transport sector.

What are the ethanol percentages in E22, E25, E27, and E30 fuels?
The ethanol content increases progressively across the four fuel grades covered under the notification. E22 contains 22% ethanol and 78% gasoline, while E25 consists of 25% ethanol and 75% gasoline. E27 includes 27% ethanol and 73% gasoline, whereas E30 has the highest ethanol share at 30%, combined with 70% gasoline. These higher blending levels support renewable fuel integration and may contribute to lower emissions and improved energy security over time.