Petroleum Secretary announces 20% ethanol blending in petrol from 1 April 2023; keep an eye on these stocks

There is a big development for sugar companies as the Petroleum Secretary has said that from April 1, 2023, 20 per cent ethanol will be blended in petrol. The Cabinet Committee on Wednesday increased the price of ethanol, and now the target to achieve ethanol blending has been reduced.

Talking about this, Zee Business Research Analyst Varun Dubey informed that Hindustan Petroleum Corporation Limited (HPCL) does around 9 per cent of ethanol blending and by the end of this year, it is planning to increase it to 10 per cent.

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That is if by FY22-end the company takes it to 10 per cent then it will have to double ethanol blending in one year. The analyst said that earlier the target of 20 per cent ethanol blending achievement was 2030, which was then reduced to 2025.

He said that it a big development as ethanol blending can bring good profits. He said Nitin Gadkari, Minister of Road Transport and Highways had said that if you want to reduce petroleum cost then blending of more ethanol can help.

#BreakingNews | 1 अप्रैल 2023 से पेट्रोल में 20% एथेनॉल
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Zee Business Anchor Deepanshu Bhandari said that this decision will benefit Balrampur Chini Mills Ltd the most as it has maximum capacity that is 35 crore litre. He further listed out other companies which will be benefited including Triveni Engineering and Industries Ltd, Dalmia Bharat Ltd, Avadh Sugar & Energy Ltd, Dwarikesh Sugar Industries Ltd, Magadh Sugar & Energy Ltd, Praj Industries Ltd. etc.

He further advised investors and traders to keep an eye on sugar stocks, Praj Industries and oil marketing companies.

Analyst Sandeep Jain said that market has already discounted this. He further added that this is a big structural change for the industry and the reason is the rise in crude oil prices.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)