Overview
- The Ministry of Finance exempted petrol blends with 22–30% ethanol from central excise duty on Thursday, June 11, 2026, giving an immediate tax incentive for E22, E25, E27 and E30 fuels.
- The Bureau of Indian Standards issued IS 19850:2026 in mid‑May to define fuel quality, octane, vapour pressure and safety rules for E22–E30 so refiners and retailers have a technical framework.
- India opened commercial E85 dispensing on June 5 in Delhi and priced it about Rs 20 per litre below E20 in that market while oil companies plan a phased expansion to dozens then hundreds of pumps this year.
- No mass vehicle fleet is certified for blends above E20, so the government has asked ARAI to run 60,000–70,000 km tests of E25 on existing E10/E20 cars to measure effects on mileage, engine wear and emissions.
- Surveys report drivers of older petrol vehicles facing lower mileage and extra repair costs and 43% of prospective buyers say fuel‑roadmap uncertainty could delay purchases; the excise waiver may not lower retail prices because pump rates still depend on ethanol procurement costs, state taxes and oil‑company pricing decisions.