As per the information given in a reply to a question in Lok Sabha, the minister of state for petroleum and natural gas, Rameswar Teli stated that the public sector oil marketing companies (OMCs) have achieved over 10 per cent ethanol blending in petrol during ethanol supply year (ESY) 2021-22. In addition, the government amended the National Policy on Biofuels 2018 to move the timeframe for blending 20 per cent ethanol into petrol from 2030 to ESY 2025–26. The required ethanol quantity from sugarcane and grain-based feedstocks for blending under this programme is accordingly procured by OMCs from registered bidders/suppliers.
In November 2022, the Cabinet Committee on Economic Affairs chaired by the prime minister approved higher ethanol prices derived from different sugarcane based raw materials under the Ethanol Blended Petrol Programme (EBP) for the forthcoming sugar season 2022-23. The government revised the ethanol price for supply to public sector OMCs for ESY 2022-23. First, the price of ethanol from C heavy molasses route increased from Rs 46.66 per litre to Rs 49.41 per litre. Second, the price of ethanol from the B heavy molasses route increased from Rs 59.08 per litre to Rs 60.73 per litre. Third, the price of ethanol from sugarcane juice/sugar/sugar syrup route increased from Rs 63.45 per litre to Rs 65.61 per litre. Additionally, GST and transportation charges would also be payable.
