New Delhi: Crude oil has the largest share in the Central Government's import bill. The government is going to take a major step to reduce the import bill. The government has increased the price of ethanol so that its supply can be increased. Several decisions related to ethanol were taken at the meeting of the Cabinet Committee on Economic Affairs on Tuesday under the chairmanship of PM Modi. There was also a decision in this that the state oil companies would now be able to purchase ethanol made from sugarcane.

The government hopes that by increasing the purchase of ethanol, it will be able to reduce the oil import bill by one percent this year. Minister of Petroleum and Natural Gas Dharmendra Pradhan said that the price of ethanol from C class heavy molasses is being increased from Rs 43.46 per liter to Rs 43.75. The price of B class heavy molasses is being increased from Rs 52.43 per liter to Rs 54.27 per liter.

The price of ethanol made from sugarcane juice or syrup or sugar has been fixed at Rs 59.48 per liter. This means that the sugar mill will now be able to make ethanol from the remaining sugar and sell it to oil companies. At the same time, oil companies will also purchase ethanol made from excess or rotten food products. These measures will help increase the supply of ethanol in the country. The government has set a target of purchasing 260 million liters of ethanol this year. This will also positively impact the economic health of sugar mills.

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