Tuesday, April 14, 2026 11:53 PM

Government implements policy to supply ethanol blended petroleum products

Kathmandu, March 14: The government has implemented a new policy to blend ethanol with petrol for use. The “Order Relating to the Blending and Use of Ethanol in Petrol, 2082” issued by the Council of Ministers was published in the Gazette on Friday.

Through this order, the government aims to promote industries based on domestic raw materials, create employment, increase the utilization of agricultural and biological resources, and reduce dependence on energy imports. According to the order, the Nepal Oil Corporation must blend ethanol with petrol up to a maximum of 10 percent per liter, depending on availability. The order also allows the Council of Ministers to increase or decrease this proportion as required.

Raw materials that can be used for ethanol production include molasses, Napier grass, discarded agricultural and forest-based biological materials, straw, corn cobs, wheat husk, cassava, spoiled grains, yeast, and other necessary chemicals. To prevent the misuse of food grains, the order also stipulates that grains used as food cannot be used for ethanol production.

Industries must produce ethanol only from the specified raw materials in accordance with prevailing laws, and the ethanol produced must be sold and distributed only to the Nepal Oil Corporation. This provision aims to regulate the market and clearly limits the use of ethanol to blending with petrol.

The order also states that industries must adopt environmentally friendly measures in the production process, maintain quality standards, and conduct quality testing through their own laboratories. The Corporation will also purchase ethanol only after conducting quality testing of each tanker.

People’s News Monitoring Service.

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