(ET)
The government is considering a plan to sell LPG blended with methanol, which could help reduce its cooking gas subsidy by around a third at current prices. Mixing 20 per cent methanol with LPG, as is done in several countries, is estimated to bring down the cost of cooking gas for household consumption by Rs 100 a cylinder.
The portion of methanol in the mix could be scaled up further as India enhances production of methane from coal. The financial benefits could be substantial, considering the country’s LPG subsidy bill that is estimated at more than Rs 20,000 crore in the fiscal 2019 budget.
The government has allocated dedicated coal mines for production of methane —methanol is its liquid form — after the NITI Aayog laid out a roadmap for a methanol economy for the country, both in the automotive and household sectors to bring down India’s rising fuel import bill.
