E22, E25, E27 and E30 Get Excise Duty Exemption, 500 E85 Pumps To Be Added By 2026
By Salil Kumar
Updated June 11, 2026
The Centre has extended excise duty exemptions to higher ethanol-blended petrol variants, including E22, E25, E27 and E30, removing a key regulatory hurdle for the introduction of fuels containing more than 20 percent ethanol. The decision was announced through notifications issued by the Department of Revenue under the Ministry of Finance and follows the recent notification of BIS standards for these fuel blends.
The mandate comes after the first E85 fuel pump was launched at Pusa Road priced at about ₹82 per liter and the flex fuel capable Wagon R was announced.
However, the government has clarified that the move should not be interpreted as an immediate rollout of E22 to E30 fuels across the country.
Officials have stressed that higher ethanol blends are still under evaluation and will require further testing, stakeholder consultations, vehicle compatibility assessments and infrastructure preparedness before any large-scale deployment is considered. 500 E85 Pumps will be added by the end of 2026, nationwide.
Under the notified specifications, E22, E25, E27 and E30 fuels contain 22 percent, 25 percent, 27 percent and 30 percent ethanol respectively, with the remaining portion consisting of petrol.
The policy change is part of India's broader ethanol-blending roadmap aimed at reducing crude oil imports, supporting domestic biofuel production and preparing the ecosystem for higher ethanol usage in the future. Despite the regulatory approval, motorists are unlikely to see these fuels at fuel stations anytime soon.
Source- (The Times of India)
Image- PIB
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