With rising petrol prices, government planning relief for consumers in fuel consumption

Sources tell Zee Business that government will soon release an order allowing direct sale of E100 for use as a standalone fuel for compatible automobiles. The government has currently prepared a draft notification and will soon bring an amendment in its Motor Spirit and high-speed diesel order 2005. 

In a move aimed at reducing vehicular pollution, Ministry of Road Transport and Highways last week notified the use of E20, a blend of 20 per cent of Ethanol with 80 per cent of gasoline, as automotive fuel and issued mass emission standards for the same.

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E20 fuel is good for the environment since the blended fuel has a lesser amount of hydrocarbons and carbon monoxide. The car and bike manufacturers will be required to tell which vehicle is suitable for E20 fuel. The E20 compliant will help in bringing down import of crude oil.

This is going to be majorly beneficial to the sugar companies, OMC's and ethanol companies who can benefit from increased production of ethanol with surplus stocks. "It would be a challenge to produce that level of ethanol because of scarcity of distilleries, and water resources in India. Govt will have to build a lot of infrastructure and fund sugar and grain based distilleries to make this happen." said an industry leader.