Ethanol boost: Unblended fuel to attract Rs 2 per litre excise duty

The government is taking various steps to boost ethanol production as well as its consumption. In order to promote blended fuel, the government has decided to impose an excise duty of Rs 2 per litre on unblended fuel from October 1 of this year.

Finance Minister Nirmala Sitharaman in her budget speech said today, “Blending of fuel is a priority of this Government. To encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential excise duty of Rs 2/ litre from the 1st day of October 2022.”

This would help in boosting ethanol consumption and promote private fuel retailers to sell blended fuel.

The central government with an aim to lower the expenditure on foreign exchange has set a target of blending 20 per cent ethanol with petrol by 2025. The roadmap for ethanol blending in India 2020-25 was released by Prime Minister Narendra Modi on June 5 tast year on the occasion of World Environment Day.



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