Ethanol prices hiked by up to Rs 1.47 per litre for blending in petrol

Cabinet on Wednesday hiked the price of ethanol extracted from sugarcane for blending in petrol by up to Rs 1.47 per litre for 2021-22 marketing year starting December.

The govt also approved a mechanism for procurement of ethanol by public sector oil marketing companies (OMCs) under the ethanol blended petrol program, announced Union Minister Anurag Thakur, as part of its target to achieve 20 per cent doping by 2025.

"Price of ethanol from C heavy molasses increased to Rs 46.66/litre; from B heavy molasses increased to Rs 59.08/litre," said Thakur.

The Cabinet Committee on Economic Affairs (CCEA), headed by PM Modi, raised the price of ethanol extracted from sugarcane juice to Rs 63.45 per litre from the current Rs 62.65 per litre for the supply year beginning December 2021.

Thakur said the ethanol blending with petrol has touched 8 per cent in the 2020-21 marketing year (December-November) and is expected to reach 10 per cent in the next year.

Higher mixing of ethanol in petrol will help cut India its oil import bill and also benefit sugar cane farmers and sugar mills.