Ethanol procurement price increased by OMCs

State-run oil marketing companies (OMCs) – Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), and Indian Oil Corporation Ltd (IOCL) – have decided to procure ethanol to blend with fuel before selling it.

The OMCs have announced an increase in ethanol procurement price for a six months period ending November 30, 2022. This will offer relief to ethanol manufacturers who are facing high input cost, primarily on account of fuel and electricity.

India achieved its target of an average of 10% blending across the country five months in advance earlier this month and now the government and industry are hopeful of expediting the more ambitious target of increasing the ethanol blending to 20% by 2025-26.

Three senior officials from the oil marketing companies confirmed that the companies have announced a ‘Six-months Relief Scheme’ to support ethanol manufacturers.

There is no change in the basic price of ethanol from the different feedstock and the vendors have to maintain the prevailing rates in the invoices. To avail the relief, the vendors will have to raise a separate invoice for the relief amount at the end of every quarter.