Budget proposes to impose excise duty on unblended fuels

New Delhi, Feb 1 The Budget for FY23 proposed to impose a differential excise duty of Rs 2 on unblended fuels from October 1, 2022.

In her Budget speech, Finance Minister Nirmala Sitharaman said blending of fuel is a priority of the government and the move to impose the duty is towards encouraging the programme.

The Centre had, in 2021, advanced its set deadline to meet the target of 20 per cent ethanol blending in petrol from 2030 to 2025.

In line with the announcement, many investments and expansion activities are expected in the biofuel space.

Stocks of sugar companies too also turned buoyant with the preponement of the deadline. Sugar, besides other agricultural commodities, are used in producing biofuel.