India to implement mandatory blending of 5% ethanol in gasoline

India’s Cabinet Committee on Economic Affairs (CCEA) issued a statement indicating that the mandatory blending of 5% ethanol with gasoline will now be implemented nationwide. The Petroleum Ministry will issue a notice for its implementation from December 1, it said.
Oil marketing companies (OMCs) such as Bharat Petroleum Corporation Ltd., Hindustan Petroleum Corporation Ltd. and Indian Oil Corporation have been blending ethanol for the past two years, but the policy was only partially implemented in the absence of a clear government directive.
At the same time, the cabinet announced changes to the country’s ethanol policy that will allow the market to determine the price of ethanol, instead of a government-set ceiling.
“The procurement price of ethanol will be decided henceforth between OMCs and suppliers of ethanol. In case of any shortfall in domestic supply, the OMCs and chemical companies are free to import ethanol,” the committee said in a statement.
“Procurement of ethanol at a price determined by the market will ensure stability — to the extent of implementation, this reduces the dependence on imported crude and leads the nation ahead on fuel self-sufficiency,” the committee said.