India has extended the excise exemption for biofuels to encourage the mixing of higher proportions of ethanol and vegetable oil components with gasoline and diesel.

According to an Indian government source for Reuters, the tax exemption will apply to a 12% to 15% ethanol supply mixed with gasoline, up from the previous 10%. For diesel, the exemption will apply to a 20% stake in long-chain fatty acid esters obtained from vegetable oils, the order said.

The world's third-largest importer and oil consumer, India has been interested in containing its oil import account since the conflict in Ukraine spurred an increase in global oil prices.

India plans to introduce 20% ethanol mixed with gasoline in some parts of the country from April next year, followed by a national launch from 2025/26.

Source: RPA news