Modi govt approves ethanol as standalone fuel, allows oil firms to sell E-100 directly

People troubled with the skyrocketing prices of petrol and diesel are going to get some relief as the government has approved the use of Ethanol as Standalone Fuel. Oil marketing companies have now been allowed to sell E-100. Permission has been granted. According to sources, an order has been issued by the Petroleum Ministry. However, this fuel will be used only in those vehicles which will be E100 compatible.

The Petroleum Ministry issued an order declaring ethanol as Standalone Fuel. Like petrol and diesel, the government has allowed the sale of E-100 directly. For this, the motor spirit and high-speed diesel order 2005 has been amended.

This decision of the government will greatly benefit the sugar companies, OMC's and ethanol companies. These companies can benefit from increased ethanol production with surplus stock. 

An expert in the matter informed that it would be a challenge to produce that level of ethanol due to the scarcity of distilleries and water resources in India. The government will have to build a lot of infrastructure, sugar and grain-based distilleries to do this.

Meanwhile, oil marketing companies on Thursday slashed petrol and diesel prices for the second consecutive day. Petrol prices in Delhi have come down by 21 paise and diesel by 20 paise. After this, the price of petrol in Delhi has reached Rs 90.78 per litre and the price of diesel has become Rs 81.1 per litre.

In the last two days, petrol in Delhi has become cheaper by 39 paise and diesel by 37 paise. Earlier on Wednesday, there was a change in the prices of petrol and diesel after 25 days.