IPA Newspack
  • Home
  • now
  • politics
  • business
  • markets

IPA /

Markets

Markets

High crude prices may spur fuel blending

With the price of Brent crude surging past $113 per barrel on Wednesday amid concerns over supply disruptions after Russia’s invasion of Ukraine, and a steep hike in domestic fuel prices looking imminent, the Centre’s ambitious ethanol blending programme (EBP) may get a shot in the arm. The country is dependent on oil imports to meet more than 80% of its oil demands. In 2020-21, state-run oil marketing companies sold 3672 crore litres of ethanol-blended fuel, representing a foreign exchange saving of Rs 9580 crore ($1.3 billion).

According to the Indian Sugar Mills Association (ISMA), the country has a capacity to make 722 crore litres a year of ethanol currently, which will reach 1,500 crore litres a year by 2025. India’s ethanol blending has seen a sharp rise in the last five years, from 2.07% in 2016-17 to 8.10% in 2020-21. To help reduce its dependence on costly oil imports and provide farmers with an additional source of income, the Union government last year brought forward the target to achieve 20% ethanol blending with petrol from 2030 to 2025. “In 2020-21, the OMCs were supplied 302 crore litres of ethanol, from which the country achieved an average blending of 8.10%. We hope to see the country achieving 10% blending target by the end of FY2022 and 20% by 2025,” ISMA DG Abinash Verma said, adding that to meet the target, both the production and demand sides need to work in tandem.

According to the Niti Aayog’s roadmap for ethanol blending, India’s net import of petroleum in 2020-21 was 185 million tonnes at a cost of $55 billion. “A successful E20 programme can save the country $4 billion per annum (Rs 30,000 crore),” it said.

With a view to enhance ethanol production capacity in the country, the central government has notified two interest subvention schemes in 2018 and 2019 for molasses-based distilleries, under which interest subvention at the rate of 6% per annum or 50% of the rate of interest charged.

As per the Niti’s ethanol production projections, India will have 1016 crore litres for 20% ethanol blending by 2025-26, out of which 466 crore litres would be grain-based ethanol, while 550 crore litres would be molasses based.

“We are confident of having enough production capacity to supply the required estimated 1020 cr litres by 2025. The industry has shown a lot of interest in scaling up production, but what needs to be worked on now is to augment the demand said too, which includes getting augmenting the storage capacity in the depots for offtake of capacity and dispensing at retail pumps, which will can provide both E10 as well as E20 fuel. We also need the auto companies to come up with the right kind of cars and two-wheelers that are E20 compatible for the programme to be successful,” he said.

When asked whether the E20 deadline will be preponed, especially in view of the heightened crude oil prices, the ISMA DG said that while production of ethanol can be preponed, the demand cannot be preponed as the auto manufacturers would need time to start rolling out vehicles that are E20 compatible.

“From April 2023 onwards, E20 compatible vehicles will start rolling out and we expect that by 2025, as many as 25% to 30% of the vehicles on the streets would be E20 compatible. But to make 100% vehicles E20 compatible, we would need more time,” he said.

via India Infoline

IPA Special

West Unlikely To Stop Fuelling Russia-Ukraine War Soon

February 6, 2023
IPA Special

BJP’s Reverses In Legislative Council Elections In Nagpur Is A Bad Omen For Ruling Alliance

February 6, 2023
IPA Special

Shocks That The Indian Economy Faced Since 2014

February 6, 2023
IPA Special

Nitish Kumar Is A Victim Of Trust Deficit Amongst His Coalition Leaders

February 6, 2023
Happening Now

Parliament adjourned amid Opposition protest on Adani row

February 6, 2023
Politics

Delhi Assembly fails to elect mayor even on third attempt

February 6, 2023
Politics

Another jolt to Bengal BJP as MLA joins Trinamool

February 6, 2023
Politics

Mann govt faces heat over sacrilege case

February 6, 2023
Politics

AAP to contest all seats in MP assembly elections

February 5, 2023
Politics

New turn in UP’s OBC politics as Maurya backs caste census

February 5, 2023
Happening Now

Video shows Chinese balloon being downed by US missile

February 5, 2023
Politics

Assam CM says child marriage crackdown to continue

February 5, 2023
IPA Special

BJY Has Improved Rahul’s Image To The Congress Supporters But That Is Not Enough

February 4, 2023
IPA Special

China Reopening Changing Market Dynamics Impacting Importers

February 4, 2023
IPA Special

Union Budget 2023-24: Kerala Again Cold Shouldered

February 4, 2023
IPA Special

2023-24 Budget Keeps Key Issues Of Indian Workers Unaddressed

February 4, 2023
IPA Special

Modi Baiter Trinamool Spokesperson Saket Gokhale Is In ED Net

February 4, 2023
IPA Special

Israelis And Palestinians Do What They Do Best, But For Wrong Reasons

February 4, 2023
IPA Special

‘Let It Be Morning,’ A Stunningly Powerful Almost All-Palestinian Israeli Film

February 4, 2023
Happening Now

RBI says banking sector stable amid Adani stocks rout

February 4, 2023

An appeal

The legacy of IPA, founded by Nikhil Chakravartty, the doyen of journalism in India, to keep the flag of independent media flying high, is facing the threat of extinction due to the effect of the Covid pandemic. Only an emergency funding can avert such an eventuality. We appeal to all those who believe in the freedom of expression to contribute to this noble cause.
Click here to learn more

Share

Reply

  • 0
More on IPA

India’s import bill for edible oil likely to jump by $2 billion

April 8, 2022 9:34 am | IPA Staff

India’s import bill for edible oils is slated to jump by $2 billion, following the sharp rise in prices after Russian attack on Ukraine. Supply...

Markets

Russia offers India oil at $30-35 a barrel

April 1, 2022 10:54 am | IPA Staff

Sanctions-hit Russia is offering hefty discounts to India for direct oil purchases, which will make it attractive for New Delhi to get into contracts with...

Markets

Govt may dip into strategic oil reserves to calm prices

March 29, 2022 11:49 am | IPA Staff

The government is committed to supporting initiatives for releases from the Strategic Petroleum Reserves for mitigating market volatility and calming the rise in global crude...

Markets

Bulk diesel price rise wrecks state transport corporations

March 22, 2022 10:58 am | IPA Staff

Road transport corporations (RTCs), which are run by state governments, are staring at big losses and an undermining of their operational viability owing to last...

Markets

India’s import bill for edible oil likely to jump by $2 billion

in Markets
Apr 8, 2022   ·  

Russia offers India oil at $30-35 a barrel

in Markets
Apr 1, 2022   ·  

Govt may dip into strategic oil reserves to calm prices

in Markets
Mar 29, 2022   ·  
Follow us on
Up Next: Girl students get safe passage as PM speaks to Putin
©2020 -2021 India Press Agency, All Rights Reserved
Newspack by India Press Agency
logo
  • Home
  • now
  • politics
  • business
  • markets