The average fuel ethanol share in gasoline is to range from 7-8% vol. in 2018/19, up from 4% last year, the local press cited Petroleum minister Dharmendra Pradhan as saying. The outlook was reportedly based on the Oct/Sep sugar season. The minister pointed to a number of steps in the last four years to boost fuel ethanol demand. This includes soft loans for investment in ethanol production capacity. Industry sources added that the INR44.4 bln (USD1=INR71.16) facility in June (the cap on the loan amount was later removed) may be followed by a second round with a volume of INR18.0 bln. This may also include the participation of standalone molasses-based distilleries. The government also raised the reference prices for fuel ethanol and included fuel grades from other feedstocks than C-molasses such as sugarcane juice and B-molasses, following an increased sugar output.
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