India expands excise duty exemption to higher biofuel blends

By Erin Voegele | July 06, 2022

The government of India on July 4 announced it is expanding the excise duty exemption on ethanol and biodiesel to encourage higher biofuel blends, according to a notice published by the Ministry of Finance.

The tax exemption originally applied to E10 blends, but has now ben expanded to blends of E12-E15. The exemption will also apply to B20 made from vegetable oils, according to the notice.

India recently set an ambitious goal to move to an E20 blend of gasoline by 2025. Ethanol currently accounts for approximately 8.5 percent of the country’s gasoline, up from 1.5 percent in 2014. India earlier this year announced plans to install or upgrade nearly 200 grain-based ethanol production facilities as part of its effort to adopt an E20 blend of gasoline.