Government Notifies Central Excise Exemption for Higher Ethanol-Blended Petrol Variants up to E30

The Ministry of Finance (Department of Revenue) has issued Notification No. 26/2026-Central Excise dated June 10, 2026, introducing amendments to Notification No. 11/2017-Central Excise. The notification expands the scope of excise duty exemptions available to higher ethanol-blended petrol variants as part of India's ethanol blending programme.

Under the amendment, the Government has inserted new entries covering 22%, 25%, 27%, and 30% ethanol-blended petrol (E22, E25, E27 and E30) under tariff heading 2710 12. These fuel blends will be eligible for Nil Central Excise Duty, subject to specified conditions.

The exemption applies where the petrol blend consists of the prescribed percentage of motor spirit (petrol) and ethanol, provided that applicable duties and taxes have been paid on the respective components. The fuel must also conform to the Bureau of Indian Standards (BIS) Specification IS 19850.

The newly notified categories include:

• E22 Petrol (78% petrol and 22% ethanol)
• E25 Petrol (75% petrol and 25% ethanol)
• E27 Petrol (73% petrol and 27% ethanol)
• E30 Petrol (70% petrol and 30% ethanol)

The notification also amends Explanation 2 of the principal notification to incorporate the newly inserted entries 5E, 5F, 5G and 5H. The measure supports the government's ongoing efforts to promote cleaner fuels, reduce dependence on fossil fuels, and encourage higher ethanol blending in the transportation sector.