Page 45 - Policy Economic Report - November 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP)
Programme. The National Policy of Biofuels-2018, as amended in 2022, inter-alia advanced the target of
20% blending of ethanol in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030. Public Sector Oil
Marketing Companies (OMCs) have achieved the target of 10% ethanol blending in petrol in June, 2022
i.e., five months ahead of the target during ESY 2021-22. Blending of ethanol further increased to 12.06%
in ESY 2022-23 and approx. 14.6% during ESY 2023-24. During the last ten years, ethanol blending in
petrol by Public Sector OMCs has resulted in approximate savings of more than Rs. 1,08,655 crores of
foreign exchange as on 30.09.2024.

The ethanol produced from sugar-based feedstock has helped sugar factories to reduce its surplus sugar
inventory and generate revenue early to clear the dues of cane farmers. During the last ten years, EBP
Programme helped in expeditious payment of approx. Rs. 92,409 crores to the farmers as on 30.09.2024.
During the same period, EBP programme has also resulted in approximate savings of more than Rs.
1,08,655 crore of foreign exchange, crude oil substitution of 185 lakh metric tonnes and net CO2 reduction
of about 557 lakh metric tonnes. It is anticipated that 20% ethanol blending in petrol is likely to result in
payment of more than Rs. 35,000 crores annually to the farmers.

Steps by Government to ensure fair and reasonable prices of Petrol & Diesel for consumers

Government has been taking various steps to ensure fair and reasonable prices for consumers.
Domestically, Petrol and Diesel prices have come down from Rs. 110.04 and Rs. 98.42 per litre in
November 2021 to Rs. 94.77 and Rs. 87.67 per litre respectively (as on 18.11.2024, Delhi prices) as a result
of reduction of Central Excise duty by the Central Government by a total of Rs. 13/litre and Rs. 16/litre on
petrol and diesel respectively in two tranches in November 2021 and May 2022, which was fully passed
on to consumers. Some State Governments also reduced state VAT rates to provide relief to citizens. In
March, 2024, OMCs also reduced the retail prices of petrol and diesel by Rs. 2 per litre each, across the
country.

Government of India also took several other steps to insulate common citizens from high international
prices, which included diversifying the crude import basket, windfall taxes on export of petroleum
products, invoking the provisions of Universal Service Obligation to ensure availability of petrol & diesel
in domestic market, increasing the blending of ethanol in petrol, etc.

Recently PSU OMCs have carried out intra-state freight rationalisation. This has benefitted consumers
located at remote areas, far from Petroleum Oil & Lubricants (POL) Depots in form of reduced Petrol and
Diesel prices in remote parts within the states. This initiative has also reduced the difference between the
maximum and minimum retail prices of Petrol or Diesel within a state.

Maharatna PSUs NTPC and ONGC Join Hands to form a JV Company

Maharatna PSUs NTPC and ONGC have collaborated to form a Joint Venture Company (JVC) through their
Green Energy Subsidiaries (NTPC Green Energy Ltd. and ONGC Green Energy Ltd.) to further promote their
interest in renewable and new energy arena.

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