The government has exempted several ethanol-blended petrol variants from excise duty in a move aimed at accelerating the adoption of cleaner transportation fuels and supporting India's ethanol blending programme.

According to a notification issued by the finance ministry, excise duty will now be 'nil' on petrol variants containing higher proportions of ethanol, including E22, E25, E27 and E30.

The duty waiver applies to petrol blended with 22 per cent, 25 per cent, 27 per cent and 30 per cent ethanol. The measure is intended to encourage consumers to shift towards ethanol-blended fuels, which are seen as a key component of the government's strategy to reduce dependence on imported crude oil and lower emissions.

The decision comes amid a rise in fuel prices, with petrol and diesel rates increasing by nearly Rs 7.50 per litre during the second half of May.

Earlier, in March, the government had reduced excise duty on petrol and diesel by Rs 10 per litre, a move that resulted in an annual revenue sacrifice of more than Rs 1 lakh crore. The tax cut was aimed at protecting consumers from the sharp increase in global crude oil prices triggered by the conflict in West Asia.