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India slashes excise duty on ethanol-blended petrol: Key details
India, world's third-largest oil importer and consumer, has waived excise duty on blended petrol. The exemption covers E22, E25, E27 and E30 fuel blends, which contain varying proportions of motor spirit and ethanol. As per the finance ministry's notification, these blends consist of 78%, 75%, 73% and 70% motor spirit mixed with 22%, 25%, 27% and 30% ethanol by volume, respectively.
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Government may hold off on higher ethanol mandate
The government may not immediately mandate a higher level of ethanol blending but leave it to buyers to decide on flex fuel vehicles amid concerns that rushing from E20 to E25 will damage engines of existing vehicles. Most cars and 2-wheelers manufactured between 2012 and March 2023 were designed or certified to be E10-compliant, while those produced from April 2023 are E20 material-compliant, meaning they are designed to handle petrol blended with up to 20% ethanol. But only vehicles sold...