The government has reduced the GST rate on ethanol intended for blending under the Ethanol Blended Petrol (EBP) scheme from 18 percent to 5%.
In 2014, the government announced the ethanol administered price. The government announced a differential price for ethanol based on the raw material used in ethanol production for the first time in 2018. As a result, public sector OMCs’ ethanol procurement has climbed from 38 crore litre in Ethanol Supply Year (ESY) 2013-14 to over 350 crore litre in the current ESY 2020-21.
