Union Cabinet to Discuss Proposal for Ethanol Price Hike

Union Cabinet is expected to approve a proposal to increase ethanol prices during its meeting scheduled for 10:30 am on Thursday.

Sources say B-heavy molasses ethanol price to go up by ₹2/litre, sugarcane juice ethanol by ₹1.50/litre

This will incentivise OMCs to increase ethanol blending in petrol. Govt aims 20% ethanol blending in petrol by 2025-26, up from 15% now.

Ethanol blending is a key initiative to reduce dependence on imported fuel, enhance energy security and support sugar industry. Ethanol is made from sugarcane juice & molasses which are by-products of sugar production.

Encouraging ethanol blending also fits into the government’s broader agenda of promoting renewable energy and reducing carbon footprint. By increasing ethanol prices, the government wants to make its production more viable and attractive for sugar mills and ethanol producers.