Union Budget 2022: Additonal Excise Duty Of Rs. 2 Proposed On Unblended Fuel
Follow us on
Highlights
- Blended fuels are a mix of Petrol or Diesel with liquids like Ethanol
- Govt aims to achieve 20% ethanol-blending with gasoline by 2025
- Usage of Blended fuel will reduce fuel imports and air pollution
In her last annnouncement before she concluded the budget speech for FY2022-23, Union Finance Minister, Nirmala Sitharaman, brought forth a significant measure which the government hopes will help increase the production and use of Ethanol-blended fuel thereby pushing automakers to manufacture flex-fuel engines in the country. To dissuade the use of unblended fuel, an additional excise duty of Rs. 2 will be levied on it starting from October 2022. Blended fuels are a mix of Petrol or Diesel with liquids like Ethanol, and the result is lesser emissions.
Govt had recently approved a proposal to achieve 20% ethanol-blending with gasoline by 2025.
Industry Analysts feel this new measure will help in multiple ways. "An additional levy of Rs. 2 per litre on unblended fuel is a message to the Auto Industry to look at introducing vehicles which can run on blended ethanol (currently at around 7% or so with intentions to move it to 15%) and Petroleum. It will be help in reducing import bills and also take care of pollution.", said Sridhar.V, Partner, Grant Thornton Bharat LLP.
Also read: Ethanol Blend (E20) In Petrol, Everything You Need to Know
The Union Road, Transport and Highways Minister Nitin Gadkari has been advocating the use of blended fuels for sometime now. In December 2021, he had advised automakers to begin manufacturing flex engines that run on blended fuels within 6 months. The government had recently approved a proposal to achieve 20 per cent ethanol-blending with gasoline by 2025, five years ahead of its previous target. India is the third-largest country in the world when it comes to oil imports and lesser fuel consumption will help reduce the overall import bills.
Last Updated on February 1, 2022
Great Deals on Used Cars
View All Used Cars
- 1,18,054 km
- Diesel
- Automatic
- 22,376 km
- Petrol
- Manual
- 84,000 km
- Petrol
- Automatic
- 77,000 km
- Diesel
- Automatic
- 44,300 km
- Diesel
- Automatic
- 47,549 km
- Diesel
- Automatic
- 76,000 km
- Diesel
- Automatic
- 76,000 km
- Diesel
- Manual
- 62,500 km
- Diesel
- Automatic
- 85,000 km
- Diesel
- Manual
Upcoming Cars
Upcoming Bikes
Explore More
-2334 second ago
Now in its 10th year on sale, Maruti’s compact sedan found the least amount of takers this year in the month of November.
46 minutes ago
TVS Motor Company saw a growth of 50 per cent in domestic sales from November 2022.
1 hour ago
The company witnessed an increase in numbers due to the festive season registering a growth of 20 per cent compared to the corresponding month last year
1 hour ago
The Thunder Edition is up to Rs 2 lakh more affordable than the standard Jimny and is available for a limited period.
1 hour ago
Tesla Motors has begun deliveries of the Cybertruck in USA. Currently, there are two models on sale, an AWD variant and the top-spec model, which is dubbed ‘Cyberbeast’.
1 hour ago
The brand has witnessed a YoY growth of 9.7 per cent compared to the corresponding period last year.
1 hour ago
Maruti continued to see strong demand in the utility vehicle and van segments, though small car sales continue to sag.
1 hour ago
The brand has witnessed a dip in sales of 18 per cent when compared to sales from the previous month.
1 hour ago
Previously, in October 2023, the Exter bagged over 75,000 bookings, and the 50,000 mark was reached within the first month of its launch.
4 hours ago
New tech moves the EV's reduction gear into the wheel hub allowing for more compact electric motors and greater space efficiency
