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To ensure the stability of the fuel market, the Ministry of Energy and Coal Industry has deferred to a later date the practical application of the requirement for mandatory supplement of at least 5% ethanol in motor fuel starting 2014, the Information-Analytical Bulletin of the cabinet of Ministers of Ukraine informs.
The Ministry of Energy and Coal Industry issued a letter on this subject to the Verkhovna Rada Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety. In particular, it speaks about advisability of deferring adding ethanol in gasoline to 2016.
By that time, the government and relevant agencies will be able to organize a high-quality preparation of the domestic market for such an innovation. "Without closing a number of issues, the sale of gasoline with bioethanol could lead to a sharp rise in fuel prices." Ministry of Energy and Coal Industry experts said.
Experts draw attention to a possible shortage of bioethanol (ethyl alcohol is produced from vegetable raw materials - sugar beet, corn), as domestic production is not currently capable to fully cover the market needs, as well as to the lack of appropriate legal and regulatory framework related to the import of bioethanol from foreign manufacturers.
The Ministry of Energy and Coal Industry estimates that the overall price jump for motor fuel with ethanol, if its launched in 2014, could reach 4 UAH / liter.
To avoid such a price jump, which negatively affects the consumers interests, industry experts request the Verkhovna Rada's Energy Committee to support the bill to defer the launch of sale of gasoline with bioethanol to 2016.
This novelty is intended to reduce Ukraine's dependence on oil imports, improve the ecological situation and stimulate the development of the domestic alcohol industry. The government expects to convert 29 local distilleries for production of bioethanol within two years.