OMCs announce additional incentive of Rs 5.79 per litre on maize-based ethanol, hike applicable from Friday

Oil Marketing Companies (OMCs) announced an additional incentive of Rs 5.79 per litre (Excluding GST) for ethanol sourced from maize on Thursday. After this incentive hike, the cost of ethanol sourced from maize will rise from Rs 66.07 per litre to Rs 71.86 per litre.

The incentivised price will be paid for all ethanol procured by the Oil Marketing Companies after January 5 2024, and remian effective for the rest of the Ethanol Supply Year (ESY) 2023-24. 

The incentive is expected to significantly boost the production of ethanol from maize.

Earlier on Wednesday, Petroleum Minister Hardeep Singh Puri stated that the number of ethanol-blended fuel E20 stations in India have crossed 9,300, and that the government was on pace to complete the project by 2025. 

The minister stated that the government is still committed to its Ethanol Blending Programme and is working on sustainable aviation fuel (SAF). 

The Union Minister stated that blending ethanol into petrol saved over Rs 24,300 crore in foreign exchange in the supply year 2022-23, while state-run oil marketing companies saved about 509 crore litres of petrol, with an estimated net reduction of 108 lakh metric tonnes in carbon dioxide. 

Also Read - Outlets retailing E20 fuel will cover entire country by 2025: Petroleum Minister