The Modi government has taken a big decision to reduce the rising prices of petrol. The government has reduced the GST rate on ethanol from 18% to 5% under the Ethanol Mixed Petrol (EBP) program.
The common man is troubled by the rising prices of petrol. In such a situation, the Modi government has taken a big decision. The government has reduced the GST rate on ethanol from 18% to 5% under the Ethanol Mixed Petrol (EBP) program. Explain that under the EBP program, ethanol is mixed in petrol. Minister of State for Petrol and Natural Gas Rameshwar Teli has given this information in a written reply to a question in Lok Sabha.
Government decides the rate of ethanol
Let us tell you that the government released the rate of ethanol from 2014. For the first time in 2018, the government had fixed the rate of ethanol based on the raw material used to make ethanol. The purchase of ethanol by public sector oil companies has also increased. Ethanol supply year (ISY) has increased from 38 crore liters in 2013-14 to more than 350 crore liters in the current ISY year 2020-21.
Ethanol is made from sugarcane
The government decides the purchase price of ethanol produced from sugarcane-based feedstock such as C&B heavy molasses, sugarcane juice, sugar, sugar syrup. Along with this, the purchase price of ethanol produced from grain-based feedstock is fixed by the public sector marketing companies on an annual basis. The government has taken several steps to limit sugar production in the country and increase domestic production of ethanol, including allowing replacement of heavy molasses, sugarcane juice, sugar and sugar syrup for ethanol production.
Mixing ethanol in petrol reduces pollution
Significantly, the government had last month increased the prices of ethanol extracted from sugarcane for blending with petrol by Rs 1.47 per liter. These prices have been increased for the 2021-22 marketing year starting from December. The government says that adding more ethanol to petrol also reduces pollution and gives farmers a way to earn a separate income.
