Govt raises ethanol procurement price for fuel blending

New Delhi: The Cabinet Committee on Economic Affairs has given its approval for an increase in the price of ethanol procured by public sector oil marketing companies for fuel blending. The increase in prices will be effective for one year starting December 1.

What are the new prices?

The price of ethanol from C heavy molasses route was increased from Rs 43.46 per litre to Rs 43.75 per litre. The price of ethanol from B heavy molasses route was increased from Rs 52.43 per litre to Rs 54.27 per litre. The price of ethanol from sugarcane juice/sugar/sugar syrup route was fixed at Rs 59.48 per litre.

Additionally, GST and transportation charges will also be payable.
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OMCs have been advised to fix realistic transportation charges so that long-distance transportation of ethanol is not disincentivised, an official release said.

Ethanol from sugarcane to be given priority

OMCs are advised to continue according priority to ethanol derived from sugarcane juice/ sugar/ sugar syrup, heavy molasses, C heavy molasses and damaged food grains/ other sources, in that order, the release said.