Indian Oil Firms Agree To Settle the Account of High Energy Cost For Ethanol Production
- 12-Jul-2022 4:29 PM
- Journalist: S. Jayavikraman
New Delhi, India- India recently achieved a 10% ethanol-blend fuel target and now looks forward to attaining a 20% ethanol biofuel target. The Prime Minister of India aims to accomplish net-zero fossil fuel excretion and reduce vehicle pollution by 2070. The decision taken by the Indian Oil investors is made to empower businesses to change to cleaner choices, including sustainable and biofuels to cut carbon impression. Furthermore, the rising concern regarding the environment and public health has showcased the need for and importance of biofuel in the regional market.
Coming to the rescue, the Indian state fuel investors have consented to help the Ethanol manufacturers financially to cut down the production cost. This aid aims to give money-related help to sugar factories and different ethanol makers to make up for high energy expenses to support biofuel creation, as indicated by a letter composed by the organizations to producers. The regional market has skyrocketing feedstock prices for corn, sugarcane as the Kharif season will start soon, and the manufacturers have reached the limit for the feedstock. The same goes with sugarcane, and the supply shortage with Ethanol manufacturers has undoubtedly impacted the operational rate ad production cost.
Furthermore, the Indian government promotes Ethanol production to cut down the dependency on natural petroleum from major exporting countries. According to the major fuel retailers, they will pay an extra amount to the Ethanol manufacturers as the rising temperature, and gasoline prices from major exporters and suppliers have proportionally impacted the prices of Ethanol in the Asia Pacific market. Indian Oil Corporation and Hindustan Petroleum will play a significant role in accomplishing the target proposed by the Indian government.
As per ChemAnalyst, the market prices of Ethanol will follow the upwards trend to stabilize the fluctuating prices of Ethanol in the regional market. The feedstock, corn, and sugarcane are major food commodities that will face inflation from March 2022. This inflation and burning electricity prices consequently raised the production cost of Ethanol. Major oil investors have lightened up the burden on Ethanol producers with the corporation of the Indian government.