The Indian government has expanded the country’s biofuel tax exemption in a bid to promote higher blending percentages of vegetable oils and ethanol, Reuters reported.

India, the world’s third-biggest petroleum oil importer and consumer, has been keen to reduce its import bill following a surge in global crude prices due to the ongoing conflict in Ukraine, according to the 5 July report.

The tax exemption would be applicable to a 20% portion of alkyl esters of long chain fatty acids obtained from vegetable oils blended with diesel, the government order said, and to an ethanol portion of 12%-15% blended with gasoline (up from the previous 10% blend).

India planned to introduce 20% ethanol blending with gasoline in some parts of the country from next April, followed by a nationwide roll out from 2025/26, Reuters wrote.