Updated By: LatestGKGS Desk
Cabinet revises ethanol mixing for price stability to OMC, petrol
Cabinet approves to check the Ethanol Price supplied to Oil Marketing Companies (OMC), features of EBP programme
The Cabinet committee of Economic Affairs have proposed an Ethanol Blended Petrol programme for modification of ethanol prices in the session 2016-2017 supplied to Public Sector Oil Marketing Companies.
The aim of setting this program is to stable the prices of ethanol and will be revised by the Central Government at any time during supply period.
Ethanol Blending to decrease import of foreign oil
As per the programme, In case of VAT, Excite Duty and Transportation expenses will be paid to the ethanol suppliers.
This programme was launched by the central government in 2003 to use environment friendly fuel, reduce imports and to take measures to control air pollution causing from vehicles.
In 2003, Oil Marketing companies were not able to meet the demand of Ethanol so they placed a new pricing mechanism to the Government and then decided to provide prices at OMC depots.
Under this programme, Ethanol is blended with Petrol which reduces the carbon monoxide emissions and is cheap to manufacture.
