The meeting of the Union cabinet is going on at the PM residence and sources have reported that the cabinet can take a decision on increasing the price of ethanol today. An increase of Rs 2 per liter is possible in ethanol made from B-heavy molasses. An increase of Rs 1.5 per liter is possible in the price of ethanol made from sugarcane juice.
The price of ethanol made from B heavy molasses is expected to increase by about Rs 2
According to sources, the price of B heavy molasses can be increased from Rs 60.73 per liter to Rs 62.55 per liter. Apart from this, an increase of Rs 1.31 in the price of cane juice can be possible. Under this, the price of cane juice can be increased from Rs 65.61 per liter to Rs 66.92 per liter. In anticipation of this decision, a good rise is being seen in the stocks of sugar companies and today sugar stocks are also trading with a good jump in the stock market.
Target to take ethanol blending to 20 percent
The target is to increase ethanol blending in petrol to 20 percent by the year 2025-26, which is currently at 15.83 percent. According to sources, it has been reported that the incentive of Rs 6.87 paise per liter can be regularized. Union minister Nitin Gadkari has also said that in the next 2 years, ethanol blending in petrol will be increased to a full 20 percent.
This is the long-term target of the government
By increasing the price of ethanol, the government aims to promote ethanol blending in petrol by oil marketing companies, which is currently near 16 percent. Apart from this, the government's target is to reduce the country's dependence on imported fuel. Keep in mind that ethanol is made by mixing sugarcane juice and molasses. Ethanol blending also helps in reducing air pollution and will also help in reducing the import bill
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