Petrol to escape Rs 2 green tax from October on 10% ethanol blending
NEW DELHI: India has achieved nearly 10% ethanol blending of petrol months ahead of the target, a move that will spare consumers an additional Rs 2 per litre tax from October.
The budget had proposed the additional tax on unblended petrol from October to speed up adoption of the cleaner fuel as part of the country’s energy transition and climate action plans.
But ethanol supply remains a concern, even though the government is pushing hard to expand capacity.
The roadmap for blending prepared jointly by the oil ministry and government think-tank Niti Ayog for developing an ethanol economy in the country had set a target of 5% blending by the end of 2022 and 20% by 2025.
