Govt hikes price of ethanol used for petrol blending, sugar stocks spike
DSIJ Intelligence / 01 Nov 2017
Under the Ethanol Blended Petrol (EBP) Programme, sugarcane-extracted ethanol is used for blending and supplied to Public Sector Oil Marketing Companies (OMCs).
Prices for ethanol which is used for direct blending with petrol by state-owned fuel retailers was marginally hiked to Rs. 40.85 per litre. The price was raised by approx. Rs 2 per litre and will be effective from December 1, 2017.
The Cabinet Committee on Economic Affairs (CCEA) approved the revision on Wednesday.
Under the Ethanol Blended Petrol (EBP) Programme launched by the Government in 2003, sugarcane-extracted ethanol is used for blending and is supplied to Public Sector Oil Marketing Companies (OMCs).
On the back of this announcement, stocks of sugar companies spiked up on Wednesday. The stock of Balrampur Chini Mills closed at 174.30, up by 1.81%, Dalmia Bharat Sugar at Rs. 186.50, up by 1.69%, Bajaj Hindusthan Sugar at Rs. 15.44 per share, up by 3.35%, Triveni Engineering at Rs. 96.40, up by 1.90%, Shree Renuka Sugars at Rs. 15.44, up by 7.07% and Sakthi Sugars at Rs. 28.0, up by 6.46% on BSE.