Nil Road & Infrastructure Cess on E22 to E30 Petrol Blends: CBIC Issues Central Excise Notification
The Central Board of Indirect Taxes and Customs has issued a significant notification extending tax relief to higher ethanol-blended petrol variants. Through Notification No. 28/2026-Central Excise dated 10th June, 2026, the Ministry of Finance (Department of Revenue) has prescribed a Nil rate of Road and Infrastructure Cess on petrol blended with ethanol at concentrations of 22%, 25%, 27%, and 30% by volume. This move reinforces the Government's ongoing policy commitment toward cleaner fuel alternatives and reduced dependence on conventional petroleum products.
Legal Framework and Enabling Provisions
The notification draws its authority from sub-section (1) of Section 5A of the Central Excise Act, 1944 (1 of 1944), read in conjunction with Section 112 of the Finance Act, 2018 (13 of 2018). The Central Government, being satisfied that the exemption is warranted in the public interest, has exercised its statutory power to grant relief from the additional duty of excise levied in the form of Road and Infrastructure Cess.
This is not a partial concession — the notification exempts the entire amount of Road and Infrastructure Cess that would otherwise be leviable under Section 112 of the Finance Act, 2018, effectively bringing the applicable cess rate down to Nil for the specified ethanol-blended petrol variants.
Goods Covered Under the Notification
The exemption applies to four distinct ethanol-blended petrol grades, all falling under Tariff Item 2710 12 of the Fourth Schedule to the Central Excise Act, 1944. Each blend must satisfy two overarching conditions: (a) the constituent components must have borne their respective applicable taxes, and (b) the blend must conform to the Bureau of Indian Standards specification IS 19850.
The four qualifying product categories are detailed below:
1. E22 — 22% Ethanol Blended Petrol
Nil Rate of Road and Infrastructure Cess
This blend consists, by volume, of:
- 78% motor spirit (commonly known as petrol), on which the appropriate duties of excise have been paid; and
- 22% ethanol, on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid.
The blend must also conform to IS 19850 as prescribed by the Bureau of Indian Standards.