Kathmandu: Minister for Industry, Commerce, and Supplies, Damodar Bhandari, announced that the government is in the final stages of setting the price for ethanol to be blended with petroleum products. Speaking at a discussion program titled “Extensive Debate on Ethanol Blending in Petroleum Products,” organized by the Nepal Economic Journalists Association (NAFIZ) in the capital on Monday, Minister Bhandari emphasized that the government has already made significant progress on this front.
“The regulation for blending ethanol with petroleum products has already been drafted. What remains is to finalize the pricing, and we will do so within a month,” Minister Bhandari stated during the event, where he was the chief guest.
He further explained that the production of ethanol has the potential to reduce daily petroleum consumption by 200,000 kiloliters. To achieve this, the government has already provided necessary policy guidelines and instructions to the Nepal Oil Corporation. He noted that the reduction in petroleum consumption through ethanol production would not only reduce fuel imports but also create jobs within the country.
The concept of blending 10% ethanol with petroleum products has gained considerable attention in recent times. Although the policy for ethanol production and usage was introduced as early as 2003, it has yet to be implemented. However, the Nepal Oil Corporation has expressed its readiness to move forward with production, claiming that the blending and production of ethanol in Nepal is feasible.
Ethanol Production Is Not Rocket Science: NOC Executive Director Dr. Bhatt
Dr. Chandika Prasad Bhatt, Executive Director of the Nepal Oil Corporation (NOC), reiterated that the government has made substantial progress toward ethanol production and usage. He acknowledged that while the plan to blend ethanol with petroleum products was introduced in 2003, delays have occurred for various reasons. However, the government is now actively working toward implementation.
Dr. Bhatt stated that the Department of Industry has already approved the procedures necessary for ethanol production and use. “We will move forward with ethanol production soon. It’s not rocket science,” he remarked, adding that ethanol use could help reduce daily fuel consumption by 400,000 kiloliters.
He further revealed that several industries are ready to produce ethanol, and plants could be set up with investments ranging from 2.5 to 3 million rupees. However, Dr. Bhatt emphasized the need to carefully consider annual production capacity, consumption levels, and pricing before proceeding.
Despite earlier predictions that petroleum consumption would decline by 2020, demand remains high. Dr. Bhatt stressed the importance of promoting ethanol to reduce this dependency, particularly in a country like Nepal, which does not produce petroleum products. “The government has made the policy, the decision for ethanol blending has been taken, and we are ready to start production,” he concluded.
