Country’s largest refiner, Indian Oil Corporation (IOC) has said that it would not float

RELATED ARTICLES BPCL, HPCL, IOC rally on petrol price hike BPCL, HPCL, IOC rally on petrol price hike Vizag refinery capacity expansion likely by 2015-16: HPCL HPCL, IOC gain on fuel price hike reports HPCL may sign crude import pact with Azerbaijan firm

fresh tenders for ethanol purchase for blending with petrol. IOC will wait for a directive from government-appointed inter-ministerial group on pricing and inter-state movement of ethanol.

“Ethanol sellers are likely to get a higher price. IOC will take steps only after the new committee announces its decision on the ethanol price and quantity available in the country,” a top IOC official, requesting anonymity, told Financial Chronicle on the sidelines of second India-Africa Hydrocarbon conference in the capital on Monday.

Last month, the cabinet committee on economic affairs had asked the petroleum ministry to ensure that oil-marketing companies sell petrol doped with five per cent ethanol. Petroleum ministry has recently decided to set up a committee of experts to study in detail the various issues related to ethanol supply in the country.

“When we floated tenders last time for ethanol supply, only 40 per cent of our demand was met,” said the official without giving the exact figures. Financial Chronicle on December 4 had reported that Hindustan Petroleum Corporation has already finalised orders for supply of ethanol for blending in petrol in 16 states and four union territories but due to short supply, the entire demand of ethanol couldn’t be fulfilled.

In addition, IOC in the next two-three months will decide if the proposed Ennore liquefied natural gas (LNG) terminal project is to be revived. In 2007, IOC’s project was put on hold after the project was found to be economically unviable. The planned LNG plant would have an annual capacity of 2.5 million metric tonnes.