Government hikes ethanol price for OMCs to Rs27 a litre
16 Aug 2010
The government has fixed the interim price of ethanol supplied by sugar mills to oil marketing companies at Rs27 a litre against the existing Rs21.50 per litre.
The cabinet committee on economic affairs (CCEA) has approved an interim price of ethanol of Rs27 per litre for mandatory blending with petrol, but a final rate will be set after an expert group gives its recommendation, an official release said today.
The ex-factory price of Rs27 per litre of ethanol procured by oil marketing companies (would be uniform throughout the country, the release said.
The price has been fixed on an ad hoc basis and would be effective from the date of communication of the order till the time price is recommended by the expert committee and a decision taken thereon by the competent authority, the release added.
The price, which would be subject to adjustment against the final price, is applicable for implementation of the `ethanol blended petrol (EBP) programme throughout the country except the North-Eastern states, J&K as also Andaman, Nicobar and Lakshadweep.
The government has set up an experts committee under the chairmanship of planning commission member Saumitra Choudhury for deciding on the price of ethanol used for blending with petrol.