The Centre’s ambitious ethanol blending programme (EBP) would get a boost as the price of Brent crude crossed $118 a barrel on Thursday, the highest level in nine years, due to supply disruptions amid Russia’s invasion of Ukraine, reports Financial Express.
India imports 80% of oil to cater to domestic demand. The state-run oil marketing companies sold 3673 crore litres of ethanol-blended fuel in 2020-21 which has saved Rs 9580 crore ($1.3 billion).
According to the Indian Sugar Mills Association (ISMA), the country has a capacity to make 722 crore litres a year of ethanol currently, which will reach 1,500 crore litres a year by 2025. Ethanol blending has increased from 2.07% in 2016-17 to 8.10% in 2020-21.
The Union government has advanced the target of 20% ethanol blending with petrol from 2030 to 2025 to lower the country’s dependence on oil imports and help farmers increase their income.
“We are expecting to achieve a 10% blending target by the end of FY2022 and 20% by 2025,” said Abinash Verma, DG, ISMA.
Brent crude futures surged to $118.22 per barrel in London, the highest level since February 2013. Brent crude, also known as London Brent, makes up more than half of the world’s globally traded supply of crude oil.
In the United States, West Texas Intermediate (WTI) crude oil price surged to $114.70 a barrel, the highest in 11 years.
