Government hikes price of ethanol

The government has hiked the price of ethanol which is used for blending with petrol, by almost Rs 3 per litre to Rs 43.70 for 2018-19. This will cut India’s oil import dependence as well as result in a higher price for sugarcane. India has over 80 per cent dependence on imports to meet its oil demand. The Indian government is pushing to promote 10 per cent blending of ethanol with petrol to help reduce India’s fuel import bill and also help the domestic sugar industry.