New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the revision of ethanol procurement price by 2.45 percent for state-owned Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25, starting from November 1, 2024 to October 31, 2025 under the Ethanol Blended Petrol (EBP) programme of the government.
The administered ex-mill price of ethanol for the EBP programme derived from C Heavy Molasses (CHM) for the Ethanol Supply Year 2024-25 (November 1, 2024 to October 31, 2025) has been fixed at Rs 57.97 per litre from Rs 56.58 per litre.
"The approval will not only facilitate the continued policy for the government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment. In the interest of sugarcane farmers, as in the past, GST and transportation charges would be separately payable. Increase in prices of CHM Ethanol by 3 percent will assure sufficient availability of ethanol to meet the increased blending target," said the Ministry of Petroleum and Natural Gas.
The government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 20 percent. Earlier in January, PSU Watch reported that ethanol blending in India reached 18.2 percent in December 2024, the highest-ever blending percentage achieved by OMCs so far. The Centre has advanced the target of 20 percent ethanol blending in petrol from earlier 2030 to ESY 2025-26.
"This programme is being implemented across the country to promote the use of alternative and environment-friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector. During the last ten years (as on 31.12.2024), ethanol blending in petrol by Public Sector Oil Marketing Companies (OMCs) has resulted in approximate savings of more than Rs.1,13,007crore of foreign exchange and crude oil substitution of about 193 lakh metric tonnes," said the Petroleum Ministry. As a step in this direction, OMCs plan to achieve 18 percent blending during the ongoing ESY 2024-25.
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