Centre hikes procurement prices of ethanol for blending with petrol

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  1. Central Government has increased the prices of different grades of ethanol under the Ethanol Blended Petrol(EBP) Programme for the forthcoming 2019-20 sugar season.
  2. Ethanol Blended Petrol programme was launched in 2003.It aims at blending ethanol with petrol thereby bringing it under the category of biofuels and saving millions of dollars by cutting fuel imports.
  3. This programme has been extended to the whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019.
  4. The government has been notifying the administered price of ethanol since 2014 and is being implemented by the Oil Marketing Companies (OMCs).
  5. The blending of ethanol in petrol has many benefits including (a) reduction in import dependency (b)support to agricultural sector (c)more environmentally friendly fuel (d)lesser pollution and (e)additional income to farmers.
  6. The National Policy on Biofuels,2018 also aims to increase the percentage of ethanol in petrol and diesel.Its objective is to achieve 20% ethanol blending and 5% biodiesel-blending by the year 2030.