India, June 12 -- India's ethanol blending programme has taken another step forward. The government has removed central excise duty on E22, E25, E27 and E30 petrol blends, making them exempt from the tax once they enter the market. While these fuels are not yet available at petrol pumps, the decision is expected to support the rollout of higher ethanol blends in the coming years. It also raises questions about fuel prices, vehicle compatibility and whether motorists can expect any change in mileage once these fuels become available.

The Ministry of Finance announced the excise duty waiver for petrol containing 22, 25, 27 and 30 per cent ethanol. This is the first tax incentive introduced for ethanol blends above E20. Fuel standards for t...