NEW DELHI: The Union Cabinet is likely to clear a proposal to hike ethanol prices during its meeting scheduled to take place at 10:30 am on Thursday.
According to sources, the price of ethanol made from B-heavy molasses is expected to rise by about Rs 2 per litre.
Similarly, the price of ethanol made from sugarcane juice is likely to be hiked by Rs 1.50 per litre.
The move is aimed at incentivising ethanol blending by oil marketing companies.
The government is aiming to achieve the target of blending 20 per cent ethanol in petrol by 2025-26. Currently 15 per cent ethanol blending is done in petrol.
Ethanol blending is being encouraged by the government to reduce dependency on imported fuel. Ethanol is prepared with the help of sugarcane juice and molasses.