Government may offer excise discount on gasoline blended with ethanol

5 Jul 2022 , 12:31 PM

In order to lower the cost of the fuel and hasten the process of blending to attain the 20% objective by 2025—2026, the government is likely to offer an excise concession on 12% and 15% ethanol-blended gasoline.

According to ET NOW, the excise reduction might also be applied to high-speed diesel that has been blended with 20% biodiesel.
India recently exceeded its 10% ethanol blending goal by five months, and it is now working toward a 20% blending goal that will be reached by 2025—2026.

India has saved close to Rs41,000 crore in foreign money thanks to the 10% blending. The decision becomes significant at a time when India’s rupee is losing value and needs to conserve foreign currency to support the currency.

To lower the retail price of petroleum, the government reduced excise duties in May. In order to further relieve the burden on consumers, similar reductions in municipal taxes were made in several states after the initial action.

In order to maintain the domestic supply, the government recently slapped a windfall tax on domestic crude and gasoline exports. The sharp rise in the price of crude oil internationally was advantageous to refiners.

Every two weeks, the government will check on the system, and the revenue secretary stated that if oil prices drop by $40 per barrel, the tax may be removed.