The government on Wednesday raised the price of ethanol derived from sugarcane-based raw materials Ethanol Blended Petrol (EBP) programme by up to Rs 1.47 per liter for the marketing year 2021-22, starting December.
A higher blending of ethanol in petrol will help India cut its oil import bill and will benefit sugarcane farmers as well as sugar mills. It will facilitate setting up advanced biofuel refineries in the country.
According to a statement issued by the Cabinet Committee on Economic Affairs (CCEA), the price of ethanol from the C heavy molasses route has been increased from Rs 45.69 per litre to Rs 46.66 per litre. The price of ethanol from the B heavy molasses route has been increased from Rs 57.61 per litre to Rs 59.08 per litre.
#Cabinet approves higher ethanol price derived from different sugarcane-based raw materials under the Ethanol Blended Petrol Programme for sugar season 2020-21 #CabinetDecisions pic.twitter.com/iusX0eOpVe
— PIB India (@PIB_India) November 10, 2021
Further, the price of ethanol from sugarcane juice, sugar/sugar syrup route has been increased from Rs 62.65 per litre to Rs 63.45 per litre. Additionally, Goods and Services Tax (GST) and transportation charges will also be payable, the official statement added.
The government has decided that Oil PSEs should be given the freedom to decide the pricing for second-generation ethanol as this would help in setting up advanced biofuel refineries in the country.
Notably, grain-based ethanol prices are currently being decided by Oil Marketing Companies (OMCs) only.
All distilleries will be able to take benefit from the scheme and a large number of them are expected to supply ethanol for the EBP Programme.
The government has been implementing Ethanol Blended Petrol (EBP) Programme wherein Oil Marketing Companies (OMCs) sell petrol blended with ethanol up to 10 per cent. This programme has been extended to the whole of India except the Union Territories of Andaman Nicobar and Lakshadweep islands with effect from April 1 2019 to promote the use of alternative and environment-friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give a boost to the agriculture sector.
