The government has brought into implementation a policy of using ethanol in petrol. The government has published bringing into “Order on Blending Ethanol in Petrol, 2082” (2026) in the Rapatra (Nepali gazette).
The development aligns with the government’s earlier decision to use mixed ethanol in petrol. It’s expected that bringing ethanol into the mix for petroleum products will help generate employment, promote industry, and lessen imports of petroleum.
It has been established that Nepal Oil Corporation will add a maximum of 10% of ethanol per liter to petrol. The order also makes arrangements for the Council of Ministers for the increase or decrease of the ratio as needed.
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Using ethanol will make use of raw materials such as molasses, Napier grass, straw, corn cobs, and yams. Also, sugarcane farmers have been highly motivated by the decision to allow NOC to blend ethanol in petrol.
It’s held that industries producing ethanol will have to be sold to NOC only, and the quality checks will be strictly followed. The price of ethanol will be determined at the start of each fiscal year on the recommendation of the committee.