The Hindu Business Line : EGoM meeting on Jan 17 to decide on fuel prices

Ethanol push: The Maharashtra Chief Minister, Mr Vilasrao Deshmukh (right), and the Union Minister for Petroleum & Natural Gas, Mr Murli Deora, at a press conference in Mumbai on Monday. —

Our Bureau

Mumbai, Jan 7 The panel of Empowered Group of Ministers will meet on January 17 to discuss pricing of petrol and diesel in view of high crude oil prices, said Mr Murli Deora, Union Petroleum Minister, while addressing the media at the State Secretariat here on Monday.

Mr Deora said that the group of ministers will decide on the prices and send the proposal to the Union Cabinet for approval.

Mr Deora declined to share more details on the issue with the media.

He requested the Maharashtra Government to reduce sales tax on petrol and diesel.

High crude prices have put tremendous strain on the oil marketing companies like IOC, BPCL and HPCL and reduction in sales tax will help the oil marketing companies reduce their losses.

Ethanol prices

Addressing the media, the Chief Minister, Mr Vilasrao Deshmukh, said that in view of high crude prices, the State Government has decided to withdraw the Rs 1.5 per litre inter-State tax on ethanol produced in Maharashtra.

“There is no point in levying inter-State tax on ethanol, especially when Maharashtra wants to sell excess ethanol to others states. Otherwise, nobody will buy our ethanol. We would be withdrawing the notification soon,” Mr Deshmukh said.

Maharashtra has an ethanol glut and has a capacity to produce 80 crore litres per year. Ethanol-blending requirement form Maharashtra is only 10 crore litres at 5 per cent blending and 20 crore litres at 10 per cent blending.

Therefore, the State can supply ethanol to others in huge volumes.

Mr Deshmukh said the State Government welcomed the ethanol procurement policy of the Union Government at Rs 21.5 per ethanol.

“But Maharashtra sugar cooperatives do not want to participate in the tender process of the oil marketing companies.

“The cooperatives are ready to supply ethanol to the depots of the oil marketing companies at Rs 21.5.

“The oil companies have some procedural and legal issues in accepting our demand. Therefore, all the oil companies will meet Mr Deora next week in New Delhi for finding a solution” Mr Deshmukh said.

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