Giving great relief to the common people amid rising inflation, the Central Government has completely abolished excise duty on petrol with high ethanol content. The government has increased the exemption in Central Excise Duty on petrol containing 22%, 25%, 27% and 30% ethanol. As per BIS standards, the rate of excise duty on fuel blends will be zero. The government has given this information by issuing a circular. It has been said in the circular that petrol having ethanol mixture from 22 percent to 30 percent has been taken out of the scope of excise duty and now no excise duty of any kind will be imposed on petrol having 22%, 25%, 27% and 30% ethanol.
Everyone will benefit from the government’s decision
This decision of the government will not only provide great relief to the common people, but it will also benefit the petroleum companies and all the sugarcane farmers of the country. Amid the continuing surge in crude oil prices, this is being considered a major step aimed at controlling petrol prices in the country.
- With the removal of excise duty on petrol with ethanol blend ranging from 22 to 30 per cent, their prices will be much lower than the current prices of E20 petrol (petrol with 20 per cent blend).
- Due to this decision of the government, the demand for petrol with more ethanol is also expected to increase tremendously.
- Due to increase in demand for ethanol, sugarcane farmers will get good price for their crop and in case of higher production, prices will remain stable.
- This is also expected to relieve farmers from delays in payment.
- There will be a huge reduction in dependence on crude oil imports.
- The huge increase in international oil prices will not have much impact on petroleum companies.
Many vehicles running on Alex fuel launched
However, this decision of the government will not provide immediate benefits. Actually, currently there are only vehicles in the market with engines supporting E20 petrol. However, some companies have recently launched vehicles running on flex fuel, whose engines are equally compatible with petrol containing 85 percent ethanol, just as the engines of other vehicles are compatible with E20 petrol.
Focus on making engines that support more ethanol
Along with this, companies are preparing the engines of their new vehicles in such a way that they are compatible with more and more ethanol engines. Not only this, with this decision of the government, now auto companies will also insist on developing engines running on petrol with more ethanol.
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