Government finalises ethanol blending policy, pricing to be resolved soon

KATHMANDU: Minister for Industry, Commerce and Supplies, Damodar Bhandari, stated that the government has made significant progress in formulating a policy for blending ethanol with petroleum products.

Speaking at the 'Extensive Debate on Mixing Ethanol in Petroleum Products' programme, organised by the Nepalese Association of Financial Journalists (NAFIJ) in Kathmandu today, Minister Bhandari confirmed that the government has completed the necessary preparations for the ethanol blending policy.

"The regulations for blending ethanol with petroleum products have been developed. Only the pricing remains to be finalised, which we will resolve within a month," stated Minister Bhandari. He added that the government has issued directives and made policy arrangements for the Nepal Oil Corporation to proceed with this initiative, aiming to reduce the consumption of 200,000 kilolitres of petroleum products daily through ethanol production.

Minister Bhandari highlighted that ethanol production will not only reduce petroleum consumption but also create employment opportunities within the country.

The discussion was held in the context of blending 10% ethanol with petroleum products, a topic that has been gaining attention recently. Although a policy related to this was formulated in 2060 BS, it has yet to be implemented.

The Nepal Oil Corporation has made the necessary preparations and expressed its commitment to producing and blending ethanol, stating that it is feasible.

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