Crude touching $130 & the Centre refuses to bail out public sector Oil Marketing Companies which are under tremendous strain & BPCL (Bharat petroleum Corporation Ltd.) one of the oil marketing companies deciding to put Petrol Pumps across the country on a “rationed” supply. The oil crises have touched the neighborhood & still we are not framing the 10% ethanol mandate. Why? If oil can be made available, why not ethanol?
The Government should frame the BIS (Bureau of Indian Standards) Specification of 10% ethanol blend with immediate effect. Already the sugarcane crushing in Maharashtra & Uttar Pradesh is extended till June. That is the sugarcane is still left uncrushed. So ultimately we have the raw material to produce ethanol.
The last resolution mentioned that the ethanol pricing should match Import Parity Price of petrol. During the resolution, crude was $ 50 & the Import Parity Price of petrol Rs. 23to 24. Now crude is $130 so the price of ethanol should be in the range of Rs. 40/- considering the import parity price. But as the tenders floated for purchasing ethanol was for 3 years, hence the price of ethanol never changed from Rs. 21.50 basic. Now it is very clear the Oil Companies are benefited by blending ethanol at Rs. 21.50 & hence ultimately blending of ethanol is helping them to reduce the current losses.
This is the time ethanol manufacturers and Sugar Mill Association should put up a positive plan to the government to mandate or start without mandate the E-10 objective which will help not only to the oil corporations but also to the common Indian public.