Amidst the global crisis of petrol and diesel prices and crude oil, the central government has taken a very important step for the country’s economy. The government has completely waived the Central Excise Duty on petrol containing 22% to 30% ethanol. This means that in future, when you fill fuel ranging from E22 to E30 at the petrol pump, this additional tax will not be imposed on it. This decision has not only raised the hope of providing affordable alternatives to petrol for the public, but India’s dependence on expensive crude oil imported from abroad will also reduce significantly. The government had recently approved the standards for fuel with 30 percent ethanol blending. Now with this tax exemption, the way to launch it in the market has become completely clear.
20 percent target crossed, now plan for E30
India has brilliantly achieved its target of mixing 20 percent ethanol (E20) in petrol well before the deadline. Now the government is eyeing a higher target than this. According to the new notification of the Revenue Department, now the excise duty on E22, E25, E27 and E30 fuel blends has been reduced to zero. Not only this, they have also been exempted from additional excise duty as well as road and infrastructure cess. Under the rules, E22 fuel will contain 22% ethanol mixed with 78% petrol, while E30 fuel will contain 30% ethanol mixed with 70% petrol. This special exemption will be applicable only on those blends which meet the ‘IS 19850’ standards of Bureau of Indian Standards (BIS). Also, necessary duty has been paid on petrol and GST has been paid on ethanol.
Will get freedom from global hassles of crude oil
This ethanol blending has a direct impact on our economy. Actually, India buys a large amount of crude oil from abroad for its energy needs. At present there is an atmosphere of tension in West Asia. 20 percent of the world’s oil supply passes through the Strait of Hormuz, which is in great danger of being closed due to war. In such a situation, due to supply stoppage, crude oil prices can skyrocket at any time. Increasing the use of domestically produced ethanol is India’s most perfect weapon to strengthen its energy security. This will reduce the import of crude oil, which will save the country’s precious foreign exchange reserves.
New money will come into farming
A major economic aspect of this policy change is directly related to the agricultural sector of the country. India’s ethanol blending program is progressing rapidly. Apart from sugarcane, grain based distilleries have a major contribution in this. At present only 50 percent of the total ethanol production capacity of the country is being utilized. The industry was demanding a higher blend for a long time because ethanol is available in abundance in the country. With this step of the government, factories will be able to work at their full capacity. Due to this, the consumption of sugarcane in the market will increase rapidly, whose economic benefits will directly go into the pockets of the farmers. Apart from this, increasing the amount of ethanol in petrol will also reduce carbon emissions (pollution), which is a big relief for our environment.
