India may impose levy on ethanol blended gasoline

The Pakistani government may impose a Rs 9 (US$.11) per liter petroleum levy on E10, a 10% ethanol blend of gasoline, after the Ministry of Petroleum and Ministry of Industries backed the proposal in a bid to enhance revenue collection during the 2009 to 2010 Fiscal Year. The Ministry of Industries and Production circulated a draft summary pertaining to mechanism for determining E10 prices worked out by the Oil and Gas Regulatory Authority (OGRA) on August 19.
The Ministry of Industries and Production also proposed that E10 be marketed on a trial basis in PSO stations in Islamabad/ Rawalpindi, as well as to incentivize the use of E10, by maintaining its price 10% below petroleum-based gasoline. It was also recommended to exempt the ethanol compound of E10 from the petroleum development levy and GST and provide a subsidy of Rs 2.83 (US$.03) per liter for E10. (September 1, 2009)