After paying a fixed price for ethanol used for doping in petrol, the government said it will move towards ‘market dynamic’ pricing system where rates would move in tandem with international trend.
In a bid to boost agrarian economy, the government had in December 2014 fixed a price of Rs 48.50-49.50 per litre for ethanol public sector oil companies were to buy from sugar mills for blending with petrol. This rate is about 20 per cent more than the current cost of producing petrol. “We want to link the price to market dynamics. Government will move towards market dynamic pricing system,” Oil Minister Dharmendra Pradhan said at conference on bio-fuels here. He said at present 10 per cent sugarcane extracted ethanol is being mixed with petrol and sold in eight sugarcane producing states of Uttar Pradesh, Karnataka, Maharashtra, Andhra Pradesh, Telangana, Haryana, DELHI and Bihar.