Tax on unblended fuels may add to uncertainties in ethanol blending policy

Will a mug of ethanol mixed with petrol count as blended, will 5 per cent constitute a blend, or will the government publish a rule book?

Finance Minister Nirmala Sitharaman hardly mentioned fossil fuels in her shortest Budget speech, perhaps a reflection of India’s quest for a clean energy future. The little that was said was a tax on unblended fuels. It was the last item in the speech.

“Blending of fuel is a priority of this government. To encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential excise duty of Rs 2 per litre from the 1st day of October 2022”. The statement was as opaque as it was transparent. Will a mug of ethanol mixed with petrol count as blended,