Oil firms blamed for ethanol stock pile-up
Ethanol distilleries in the country are facing rising biofuel stocks due to a demand-supply imbalance. They allege state-run oil marketing companies (OMCs) like Indian Oil, Hindustan Petroleum, and Bharat Petroleum are not buying sufficient quantities. OMC executives, however, claim they are purchasing enough to meet the 15% ethanol blending target in petrol. Limited storage capacity at OMC depots may be causing the backlog, according to an industry executive.
Ethanol distilleries, in the country are faced with high and rising stock of the biofuel amid a demand-supply imbalance that, they allege, is because state-run oil marketing companies (OMCs) are not buying sufficient quantities.
Two executives at OMCs, however, said they are buying as much ethanol as is required to meet the target of blending 15% ethanol in petrol. “The stock at ethanol producers is rising as OMCs are unable to lift enough quantity,” said an ethanol industry executive who didn’t want to be identified. “This could be
due to limited storage capacity at OMCs’ depots,” the person added. State-run oil marketing companies Indian Oil, Hindustan Petroleum, and Bharat Petroleum purchase ethanol from diverse producers to blend it with petrol at their depots before supplying the fuel to pumps.
