Ethanol assn seeks a steep 30pc price hike
PTI | 10:11 PM,Nov 23,2011Mumbai, Nov 23 (PTI) On the back of increase in prices of alcohol and molasses, the Ethanol Manufacturers Association of India today demanded a steep 30 percent increase in the price of ethanol to Rs 35 per litre that will be blended with petrol. At present, the government has fixed a provisional price of ethanol at Rs 27 a litre. This is the rate at which oil marketing firms procure ethanol from sugar mills to implement the mandatory 5 percent ethanol blending with gasoline. "Ethanol manufacturers cannot afford to sell at the current price of Rs 27 a litre given that the prices of alcohol and molasses is increasing. We want the government to increase the basic rate to Rs 35 per litre," Ethanol Manufacturers Association president Vijaysinh Mohite-Patil, an ex-deputy Chief Minister from NCP said in a statement. The government had decided for a mandatory 5 percent ethanol blending with petrol (EBP) programme in October 2007. The current cost of ethanol production is Rs 32 per litre, which is much higher than the price at which they sell their produce, Mohite-Patil said. "Price of alcohol has increased considerably over the period from Rs 22.50-23 per litre to Rs 25.50-29 per litre during off season. Since international crude oil price is increasing and OMCs are buying it at those rates, we also expect to get a higher rate for ethanol," he said. The Cabinet is likely to decide on final price of ethanol for blending it with petrol this month.
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