Ethanol Blended Petrol (EBP) Programme

GS-III: Ethanol Blended Petrol (EBP) Programme

Context

The Union Cabinet has approved a higher procurement price for ethanol purchased by oil marketing companies for the ethanol blended petrol (EBP) programme.

Ethanol Blended Petrol Programme

Ethanol Blended Petrol (EBP) programme was launched in January 2003 for the supply of 5% ethanol blended Petrol.
The programme sought to promote the use of alternative and environment-friendly fuels and to reduce import dependency for energy requirements.
OMCs are advised to continue according to the priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B-heavy molasses 3) C-heavy molasses and 4) damaged food grains/other sources.
At present, this programme has been extended to the whole of India except UTs of Andaman Nicobar and Lakshadweep islands with effect from 01st April 2019 wherein OMCs sell petrol blended with ethanol up to 10%.

About the decision

According to the new decision, the price of ethanol from C-heavy molasses will be increased from 43.46 per litre to 43.75 per litre.
The price of ethanol from B-heavy molasses will be increased from 52.43 per litre to 54.27 per litre. The price of ethanol from sugarcane juice, sugar, and sugar syrup has been set at 59.48 per litre.
The oil marketing companies will also pay the GST and transportation tax associated with the ethanol supply a provision that existed in the previous plan as well.

Source: The Hindu

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