Indian OMCs seen taking on $14.7 million in GST for blending ethanol

In India, as a result of the new goods and services tax on ethanol, the country’s three oil marketing companies will have to fork out an addition $14.7 million this year in order to supply the mandated 5% ethanol blend. Although the OMCs must buy 2.8 million liters to satisfy the mandate, smaller sugar production this year due to drought has left millers only able to supply 807 million liters. They say that if fossil fuel prices fall, they’ll need subsidies from the government to cover the cost of the additional taxes.