CCEA-Cabinet Committee on Economic Affairs today approved the mechanism for revision of ethanol price for supply to public sector oil marketing companies (OMCs) to carry out the Ethanol Blended Petrol (EBP) Programme.
An official press release said that, for the next sugar season 2016-17 during ethanol supply period from 1st December, 2016 to 30th November, 2017, the administered price of ethanol for the EBP Programme will be Rs.39 per litre. Additionally, charges will be paid to the ethanol suppliers as per actuals in case of excise duty and VAT/GST and transportation charges as decided by OMCs.
If the need arises to increase/reduce the retail selling price of Petrol by Public Sector OMCs, then such increase/reduction would proportionately factor in the requirement of maintaining the fixed cost of purchase of ethanol during the ethanol supply year. The prices of ethanol will be reviewed and suitably revised by Government at any time during the ethanol supply period that is from 1st December, 2016
to 30th November, 2017 depending upon the prevailingeconomic situation and other relevant factors, the release said.
According to it, the revision in ethanol prices will facilitate the continued policy of the Government in providing price stability and remunerative prices for ethanol suppliers.