Govt mulls rise in ethanol buys

The government is considering ways to step up ethanol buys from sugar mills to ensure the mandatory 5 per cent ethanol blending in petrol, Minister for Oil and Natural Gas Murli Deora said on Wednesday.

"We are also trying to increase the ethanol blend in petrol from the current 5 per cent," Deora said after a meeting of the Empowered Group of Ministers on sugar. He said there was no decision, however, on the inclusion of ethanol under the Central Sales Tax list.

The sugar industry has been urging the government to include ethanol in the list of goods under Central Sales Tax, 1956. Under the CST, ethanol would only attract a duty of 3 per cent.