OMCs cancel ethanol tender while ministries debate overcoming blend barriers

In India, while officials were discussing with the Prime Minister’s office the various barriers faced by the oil marketing companies to secure up to 1 billion liters of ethanol from sugar mills, the same OMCs have gone and canceled the most recent supply tender because of the price gap between what they were willing to pay and what the mills were willing to sell the fuel at. Part of the challenge is that global fuel prices are trending lower and the OMCs say they don’t want the financial burden of paying more for locally produced ethanol.