Govt hikes ethanol price to cut oil import bill by USD 1 billion
NEW DELHI: The government on Tuesday raised the price of sugarcane-extracted ethanol used for blending in petrol by up to Rs 1.84 per litre as it looked to cut oil import bill by USD 1 billion annually through its greater use in auto fuels.
State-owned oil marketing companies will buy ethanol from sugar mills, for mixing in petrol, at enhanced rates for ethanol year beginning December 1, Petroleum Minister Dharmendra Pradhan said here.
He was briefing reporters on the decisions taken by the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.
The price of ethanol from ‘C-heavy molasses’ has been raised by 29 paise per litre to Rs 43.75 while the same from ‘B-heavy molasses’, also called as intermediary molasses, by Rs 1.84 to Rs 54.27 a litre.
