Kathmandu — Minister for Industry, Commerce and Supplies Anil Kumar Sinha has announced that the policy to blend 10 percent ethanol into petrol will soon be implemented.
Speaking at a program titled “Ethanol Blending Policy in Nepal: Opportunities, Challenges and Implementation Strategy” organized by the Society of Economic Journalists–Nepal (SEJON), he said the decision has reached the implementation stage following extensive study and consultations with stakeholders.
According to him, blending ethanol into petrol could reduce petroleum imports worth approximately Rs 6 billion annually, which is expected to help narrow the country’s trade deficit. Minister Sinha expressed confidence that the ethanol blending policy would increase demand for agricultural products such as sugarcane, expand the use of agricultural land, and stimulate the domestic economy. He also noted that it would help attract foreign investment and foster a healthy competitive environment.
Govinda Bahadur Karki, Secretary at the Office of the Prime Minister and Council of Ministers, informed that an order related to ethanol blending has been issued based on the recommendations of previously formed commissions and advisory committees.
Chandika Prasad Bhatta, Executive Director of Nepal Oil Corporation, said it would take around one to one-and-a-half years for the program to be fully implemented, adding that quality standards must be determined beforehand.
Shivaram Pokharel, Joint Secretary at the Ministry of Industry, stated that although commercial ethanol production has not yet begun, the new order has paved the way for its production.
Representatives from the private sector said that while raw materials are sufficient, a conducive environment is necessary for establishing and operating industries. Shashikant Agrawal, President of the Nepal Sugar Producers Association, said that although Nepal’s annual sugar consumption is about 240,000 metric tons, only around 200,000 metric tons are produced domestically.
Consumer rights activist Madhav Timilsina emphasized the need for clear provisions regarding pricing, quality standards, and market monitoring.
The government has begun preparations to recommend a minimum price for ethanol, set quality standards, and invite tenders for production. Once the policy is published in the Nepal Gazette, a price determination committee will be formed and companies will be selected based on their production capacity.
Urjasanchar