Petrol to escape Rs 2 green tax from October on 10% ethanol blend

NEW DELHI: India hit nearly 10% blending of ethanol with gasoline months ahead of the target, a move that will save consumers an additional tax of Rs 2 per liter from October.
The budget had proposed the additional tax on unblended gasoline starting in October to accelerate the adoption of cleaner fuel as part of the country’s energy transition and climate action plans.
But the supply of ethanol remains a concern, even as the government strives to increase capacity.
The blending roadmap prepared jointly by the Ministry of Petroleum and government think tank Niti Ayog to develop an ethanol economy in the country had set a target of 5% blending by the end of 2022 and 20% by 2025. The Center has also targeted 5% blending of biodiesel with diesel by 2030.
The roadmap estimates that a 20% blend of gasoline with ethanol will lead to an annual saving of $5 billion, or more than Rs 30,000 crore on India’s oil import bill . The Center has also targeted 5% blending of biodiesel with diesel by 2030.
Prime Minister Narendra Modi in June last year upped his bet on ethanol in India’s fight against climate change by advancing the date of 20% gasoline blending by 5 years to 2025 and launching a pilot project at three Pune fuel pumps to run vehicles at full throttle. swadeshi fuel.
“The country is rapidly moving towards clean energy and we will benefit greatly from it (rapid blending of ethanol), especially in the agricultural sector,” he said at a ceremony on the occasion of World Energy Day. the environment.
For the uninitiated, ethanol is ethyl alcohol – also called “drinking alcohol” – made from molasses, grain and agricultural waste. The pandemic has made ethanol a part of our daily lives as one of the alcohol options for hand sanitizers. It is less polluting, and offers equivalent efficiency at a lower cost than gasoline by increasing the octane number. Gasoline blended with 20% ethanol is known as “E20” and ethanol for automotive use is known as “E100”.
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