India ministry targets consumer savings through ethanol blending

In India, the State Cooperation Ministry claims that consumers could save up to $0.17 (10 Rs) per liter of gasoline with 5% ethanol blending. The state government is in favor of ethanol blending and would like to increase blending to 10%, despite considerable resistance from oil companies.

The Indian Government is working with ethanol manufacturers to fix the price for ethanol between $0.63 (35 Rs) and $0.57 per liter (Rs 32). Once the price is decided in the coming months, oil companies will need meet the quota for ethanol purchase. Currently many ethanol producers are exporting due to low domestic demand.

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