Methanol mixing in LPG to cut subsidy cost

The dwindling Rupee value has prompted the Union Petroleum ministry to reduce its import bill by contemplating to mix 20% methanol in the cooking gas (LPG).

The ministry sources said that the percentage of methanol may be increased further as the government only recently decided to give a push to production of methane from the coal mines.

They said that methanol is mixed with LPG in several countries and hence the idea struck, noticing the oil import price shooting up due to falling Rupee value and rising international price of the crude oil.

These two factors are attributed behind the non-subsidised cooking gas (LPG) price going up by Rs 59 per cylinder from October 1 and Rs 2.89 per cylinder in case of the subsidised one.

The government is still considering whether the proposed 20% methanol in the cooking gas would be used to reduce the consumer’s price by Rs 100 a cylinder or aimed at cutting down the subsidy to around a third at the current prices.

India''s monthly LPG consumption at present stands at nearly 2 million tonnes and more than half the country''s demand is met with the imports.

A panel headed by Transport Minister Nitin Gadkari is vigorously pursuing promotion of the alternative fuels in the country. While he has drawn up a map for more methanol use in cars, he is discussing its use in the cooking as with the NITI Aayog on how far and how fast the government can switchover to the methanolblended cooking gas.