"The Cabinet Committee on Economic Affairs (CCEA) has approved revision in the price of ethanol under Ethanol Blended Petrol (EBP) programme for supply to the public sector oil marketing companies.
"The revised price of ethanol would be fixed at Rs 40.85 per litre under EBP and will be applicable for the forthcoming sugar season 2017-18," a Petroleum Ministry release said here after a cabinet meeting.
"The revised price will be applicable during ethanol supply period from 1st December 2017 to 30th November 2018," it said.
The current price of ethanol procurement is Rs 39 per litre, which was fixed last year.
The CCEA also decided that the "GST (Goods and Services Tax) and transportation charges will also be payable additionally," it added.
"The approval will facilitate the continued policy of the government in providing price stability and remunerative prices for ethanol suppliers," the ministry said.
"It will also help in reducing dependency on crude oil imports, saving in foreign exchange and benefits to the environment," it added.
Last year, with sugar prices rising and global crude rates falling, which increased losses being incurred by the state-run oil firms, the government had lowered the ethanol price to Rs 39 a litre, from the earlier price range fixed at Rs 48.50 to 49.50 per litre.
The EBP programme was launched in 2003 to promote use of alternative and environmental-friendly fuels and to reduce dependency on foreign fuel imports.
Since 2006, however, oil companies were unable to get offers for the required quantity of ethanol against the tenders floated by them due to various constraints in supply and pricing.
In order to augment the supply of ethanol, the government in 2014 decided to fix the delivery price of ethanol in the range of Rs 48.50 to 49.50 per litre, including taxes and transportation charges.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.
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