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Posted on  

August 14, 2002

India to sell only ethanol-mixed gasoline in nine states

New Delhi (Platts)

The Indian government has ordered the compulsory sale of ethanol-blended gasoline from January 2003 in nine out of the country's 28 states and four out of seven federal territories, oil minister Ram Naik said. The states are Uttar Pradesh, Punjab, Haryana, Gujarat, Maharashtra, Goa, Karnataka, Andhra Pradesh and Tamil Nadu. Gasoline retailed in these states would have to compulsorily contain 5% ethanol produced from sugarcane molasses. All the nine states are sugarcane-producing areas. The blended gasoline, called gasohol, would also be sold in the federal territories of Chandigarh, Daman and Diu, Dadra and Nagar Haveli and Pondicherry. Naik told a parliamentary panel that the move was aimed to reduce India's dependence on crude imports and would benefit sugarcane growers in these states.

India is a leading sugarcane-producing country. It has signed an agreement with Brazil, where gasohol is widely used, for the technology transfer. The oil ministry estimates that India would save 330,000mt of gasoline yearly by blending 5% ethanol. The government has forecast India's gasoline and diesel consumption in fiscal 2002-03 (April-March) at 7.5-mil mt and 37.6-mil mt, respectively. India is a major crude importer. It is expected to import nearly 90-mil mt of crude in fiscal 2002-03.

 

 

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