Centre Grants Excise Duty Exemption on E22, E25, E27 and E30 Ethanol-Blended Petrol

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification

No. 27/2026-Central Excise
 

Date: 10 June 2026

The Central Government has issued Notification No. 27/2026-Central Excise amending Notification No. 28/2002-Central Excise dated 13 May 2002. The amendment introduces Central Excise exemption (Nil rate) for higher ethanol-blended petrol variants conforming to BIS Specification IS 19850.

The following new entries have been inserted in the exemption table:

1. E22 Petrol (22% Ethanol Blended Petrol)

• 78% Motor Spirit (Petrol)
• 22% Ethanol
• Applicable excise duties and GST taxes should have been paid on respective components.
• Must conform to BIS Specification IS 19850.
• Central Excise Duty: Nil.

2. E25 Petrol (25% Ethanol Blended Petrol)

• 75% Motor Spirit (Petrol)
• 25% Ethanol
• Applicable duties/taxes paid.
• Must conform to BIS Specification IS 19850.
• Central Excise Duty: Nil.

3. E27 Petrol (27% Ethanol Blended Petrol)

• 73% Motor Spirit (Petrol)
• 27% Ethanol
• Applicable duties/taxes paid.
• Must conform to BIS Specification IS 19850.
• Central Excise Duty: Nil.

4. E30 Petrol (30% Ethanol Blended Petrol)

• 70% Motor Spirit (Petrol)
• 30% Ethanol
• Applicable duties/taxes paid.
• Must conform to BIS Specification IS 19850.
• Central Excise Duty: Nil.

The notification has been issued in public interest under Section 5A of the Central Excise Act, 1944 read with Section 147 of the Finance Act, 2002.