Today, a Cabinet Committee on Economic Affairs chaired by Prime Minister Modi has decided to increase the price of ethanol to be added to petrol by 5-8 per cent. This information was given by Information and Broadcasting Minister Prakash Javadekar. This decision of the Union Cabinet will help farmers to get remuneration and reduce oil imports. Up to 10 percent ethanol is added to petrol. This decision of the government will also protect the environment because ethanol is environment-friendly.
Cabinet took many decisions
The central government has fixed the maximum price of ethanol for ethanol supply year 2020-21 (1 December 2020 to 30 November 2021). Ethanol produced under the Ethanol Blended Petrol (EBP) program has been declared the maximum price based on their source. The Union Cabinet has taken several decisions.
- The price of ethanol from C heavy molasses route has been increased from Rs 43.75 per liter to Rs 45.69 per liter.
- The price of ethanol from B heavy molasses route has been increased from Rs 54.27 per liter to Rs 57.61 per liter.
- The price of ethanol from sugarcane (reed) juice, sugar or sugar syrup route has been increased from Rs 59.48 per liter to Rs 62.65 per liter.
- GST and transportation charge will be paid. OMCs have been advised to fix transportation charges at reasonable rates so that the supply of ethanol from long distances is not discouraged.
- Oil Marketing Companies (OMCs) will also consider transportation costs, availability etc. to provide good opportunities to local industries within the state.
What is EBP Program
The central government has implemented the EBP program in the entire country except Andaman and Nicobar and Lakshadweep. Under this program, OMCs sell petrol by mixing 10 percent ethanol. This program has come into force from 1 April 2019, which was introduced to promote the use of alternative and environment-friendly fuel. Through this, the government will reduce its dependence on imports to meet its energy needs and the agriculture sector will also get a boost.