Ethanol firms seek foray into petrol selling

There is a big buzz around ethanol blending with petrol as it is seen as providing relief for the consumers of this scarce commodity when international prices have seen unprecedented spike in the last few months.

But ethanol manufacturers are an unhappy lot as petroleum firms in the country are delaying commitment for ethanol purchase. They have now up the ante by seeking to open petrol pumps for ethanol-mixed petrol and direct sales to bulk consumers.

Ranjit Singh Mothite-Patil, MLC and vice-chairman of the All India Ethanol Manufacturers’ Association, said, if ethanol is blended up to 5 per cent, petrol can become cheaper by Re 1 per litre and up to 10 per cent by Rs 1.99 per litre.

The problem lies in petroleum firms unwilling to give central government-approved rate of Rs 21.20 per litre for ethanol. These companies have now invited tenders for ethanol supply and even then delaying its purchase.

“In fact, we demand an additional Rs 2 per litre for ethanol as molasses fetch around Rs 23 per litre, to encourage production of ethanol instead of molasses,” he added. There are 80 ethanol manufacturing units in Maharashtra, including 50 in the co-operative sector.

Majority of the sugar cooperatives are controlled by politicians in the state.