Centre Gives Good News to Petrol Users

The Central Government has announced a major relief for users of ethanol blended petrol. Excise duty has been fully waived on petrol blended with 22% to 30% ethanol, provided it meets the quality standards prescribed by the Bureau of Indian Standards (BIS). The move is aimed at encouraging the use of cleaner and domestically produced biofuels.

The decision is part of a broader strategy to reduce dependence on crude oil imports and promote alternative fuels. The government believes that increasing the availability of ethanol based fuels will help reduce fuel costs in the long run, save foreign exchange, and provide benefits to domestic farmers linked to the biofuel supply chain.

Earlier, the Centre reduced excise duty on petrol and diesel by ₹10 per litre. However, amid rising tensions in West Asia and concerns over fuel supplies, export duties of ₹21.5 per litre on diesel and ₹29.5 per litre on aviation fuel were imposed. Fuel companies have also increased fuel prices four times since May 15, while global oil market uncertainty continues due to geopolitical developments.