India fixes ethanol price at Rs27 per liter

A Group of Ministers (GoM), headed by Indian Finance Minister Pranab Mukherjee, fixed an interim price of Rs27 (US$0.59) per liter for ethanol to be doped in petrol. The GoM decided this price would continue until an expert committee, headed by Planning Commission Member Saumitra Chaudhuri, comes out with its recommendation on the price at which oil companies will buy the ethanol, which is extracted from sugarcane. Official sources said the GoM decided against tinkering with the Cabinet mandated supply of 5% ethanol-blended petrol. It asked the oil ministry to move a note for the Cabinet’s consideration for raising the procurement price from Rs21.50 (US$0.47) a liter to Rs27 per liter, so as to overcome the shortage of ethanol for the blending program. (April 8, 2010)