Nepal Allows Up to 10% Ethanol Blending in Petrol

The Government of Nepal has allowed the blending of up to 10 percent ethanol in petrol for distribution in the domestic market. The Ministry of Industry, Commerce and Supplies published the “Order Relating to the Use of Ethanol Blended Petrol, 2082” in the Nepal Gazette, formally introducing the policy. The decision is expected to promote the use of domestic resources and reduce the country’s dependence on imported petroleum products.According to the order, ethanol can be produced using molasses from sugar industries, Napier grass, straw, corn husks, wheat residues, and other agricultural or forest-based biomass. However, the government has imposed a strict ban on the use of edible food grains for ethanol production in order to prevent any negative impact on food security.Under the new arrangement, the Nepal Oil Corporation (NOC) has been granted exclusive authority to purchase, distribute, and sell ethanol for blending with petrol. The corporation will be allowed to mix a maximum of 10 percent ethanol per liter of petrol before supplying it to the market. The policy also makes quality testing mandatory, and the purchase or sale of substandard ethanol has been completely prohibited.The ministry will also issue technical guidelines and safety standards for ethanol production, storage, transportation, and blending with petrol. To ensure proper implementation of the order, the government plans to establish a high-level recommendation committee responsible for monitoring the system and advising on pricing and regulatory matters.The government believes that the policy will help encourage ethanol production using domestic raw materials, create employment opportunities, and reduce the country’s growing petroleum import bill. Additionally, ethanol blending is expected to support the use of cleaner fuel alternatives and contribute to efforts aimed at reducing environmental pollution.