India won’t delay 5% ethanol blending mandate

The Indian government has directed the petroleum ministry to ensure that oil companies compulsorily sell petrol blended with 5% ethanol. Due to resistance from oil marketing companies (OMCs) who cite the lack of ethanol as the reason, the scheme could not be implemented earlier. The Cabinet Committee on Economic Affairs (CCEA) turned down a proposal by the Ministry of Petroleum and Natural Gas to defer the implementation of mandatory blending of ethanol with petrol. “We have reiterated the earlier decision of the CCEA that 5% blending of ethanol with petrol be mandatory and have asked the oil ministry to ensure that oil marketing companies implement this decision. It is an environment-friendly measure,” Home Minister P Chidambaram said after the CCEA meeting. Oil marketing companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum have failed to achieve 5% ethanol blends. (November 13, 2009)