The Central Government, through Notification No. 26/2026-Central Excise dated June 10, 2026, has expanded the excise duty exemption framework for ethanol-blended petrol by inserting new entries 5E to 5H in Notification No. 11/2017-Central Excise. The amendment grants a Nil rate of central excise duty on specified ethanol-blended petrol containing 22%, 25%, 27% and 30% ethanol by volume, provided that the motor spirit component has suffered appropriate excise duty and the ethanol component has borne applicable GST. Additionally, the blends must conform to the Bureau of Indian Standards specification IS 19850. The notification reflects the Government’s continued policy push towards higher ethanol blending in transportation fuels, promoting cleaner energy alternatives and reducing dependence on conventional fossil fuels. Corresponding amendments have also been made to the explanation clause to incorporate these newly exempted categories within the existing exemption framework.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 26/2026-Central Excise | Dated: 10th June, 2026
G.S.R. 462(E).— In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 11/2017-Central Excise, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 793 (E), dated the 30th June, 2017, namely:-
In the said notification,
II. in the TABLE, after Sl. No. 5D and the entries relating thereto, the following Sl. Nos. and entries shall be inserted, namely:
| (1) | (2) | (3) | (4) |
| “5E. | 2710 12 | 22% ethanol blended petrol that is a blend, –
(i) consisting, by volume, of 78% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 22% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (ii) conforming to the Bureau of Indian Standards specification IS 19850. |
Nil |
| 5F. | 2710 12 | 25% ethanol blended petrol that is a blend, –
(i) consisting, by volume, of 75% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 25% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (ii) conforming to the Bureau of Indian Standards specification IS 19850. |
Nil |
| 5G. | 2710 12 | 27% ethanol blended petrol that is a blend, –
(i) consisting, by volume, of 73% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 27% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (ii) conforming to the Bureau of Indian Standards specification IS 19850. |
Nil |
| 5H. | 2710 12 | 30% ethanol blended petrol that is a blend, –
(i) consisting, by volume, of 70% motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 30% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid; and (ii) conforming to the Bureau of Indian Standards specification IS 19850. |
Nil”; |
II. in Explanation 2, after the figure and letter “5D”, the figures, letters and symbols, “,5E, 5F, 5G, 5H” shall be inserted.
[F. No. 190354/295/2021-TRU]
DHEERAJ SHARMA, Under Secy.
Note:- The principal notification No. 11/2017-Central Excise, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 793(E), dated the 30th June, 2017 and was last amended vide notification No. 02/2026-Central Excise, dated the 1st February, 2026, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 86 (E), dated the 1st February, 2026.
