Ethanol Price Adjustment and Accelerated Blending Targets: Cabinet's New Strategy

The Union Cabinet has approved an increase in the ex-mill price for ethanol derived from C heavy molasses to Rs 57.97 per litre for the 2024-25 period while keeping other ethanol prices unchanged. The government is advancing its ethanol blending target to 20 percent by 2025-26.

The Union Cabinet has sanctioned an increase in the ex-mill price of ethanol derived from C heavy molasses to Rs 57.97 per litre, marking a Rs 1.69 uptick for the 2024-25 period ending October 31.

Despite this change, prices for ethanol produced from B heavy molasses and sugarcane juice or sugar remain steady at Rs 60.73 and Rs 65.61 per litre, respectively, according to an announcement by the Cabinet Committee on Economic Affairs.

The government has ambitiously moved forward its target for achieving 20 percent ethanol blending in petrol to the ethanol year 2025-26, earlier slated for 2030, with public sector Oil Marketing Companies aiming for an 18 percent blend in the current year.

(With inputs from agencies.)