Government Policy to Blend Ethanol with Petrol Comes into Effect

The government has introduced a policy to blend ethanol with petrol in the domestic market of Nepal. An order to this effect was published in the Nepal Gazette on Friday, March 13.

According to the policy, the Nepal Oil Corporation (NOC) must mix up to 10 percent ethanol in each litre of petrol, depending on availability. The policy aims to promote industries based on domestic raw materials, create employment opportunities, encourage the use of agricultural and biological resources, and reduce energy imports.

Chandika Prasad Bhatta, managing director of the Nepal Oil Corporation, had recently said full implementation of the policy could take at least one year, with work already underway to set ethanol quality standards.

Once fully implemented, the move would help cut carbon dioxide emissions and lower Nepal’s annual petroleum import bill by around Rs 6 billion, according to Minister for Industry, Commerce and Supplies Anil Kumar Sinha. 

The order states that the blending ratio may be increased or decreased as required.

Molasses, Napier grass, agricultural waste, biomass, maize stalks, wheat straw, cassava, spoiled grains, and certain chemicals have been listed as raw materials for producing ethanol used as a fuel additive.

The policy prohibits the use of edible food grains for ethanol production. It also states that raw materials used for producing ethanol must comply with existing laws, and the ethanol produced must be supplied to the NOC.

Similarly, ethanol producers must adopt environmentally friendly measures during production, comply with established standards, and conduct quality tests in their own laboratories.

The government will determine the price of ethanol before the start of each fiscal year based on the recommendation of a designated committee. The approved price will come into effect from the first day of the fiscal year.

The NOC and ethanol-producing companies must sign agreements for the purchase and supply of ethanol. If any industry violates the agreement, the NOC will have the legal right to seek compensation.

– With inputs from RSS