KATHMANDU: Minister for Industry, Commerce, and Supplies, Damodar Bhandari, announced significant progress in the government’s efforts to introduce ethanol into Nepal’s petroleum products. Speaking at the “Extensive Debate on Mixing Ethanol in Petroleum Products,” organized by the Nepal Association of Financial Journalists (NAFIJ) on Monday, the Minister highlighted that the “ethanol mixing policy” is now close to implementation.
“The Regulations Related to Mixing Ethanol in Petroleum Products have already been developed,” said Minister Bhandari, emphasizing that the final task of setting the price is the only remaining hurdle. “We expect to resolve this within a month. The government has also issued directives and made necessary policy-related arrangements for the Nepal Oil Corporation (NOC) to begin integrating ethanol into petroleum supplies.”
This initiative, aimed at reducing the daily consumption of 200,000 kiloliters of petroleum products, is also expected to boost domestic employment. Ethanol, a renewable energy source, can be produced locally, reducing reliance on imported fuel and contributing to energy independence.
The ethanol mixing debate has been long-standing. A policy was first drafted in 2060 BS (2003 AD) to introduce 10% ethanol into petroleum products, but it has remained dormant for over two decades. Minister Bhandari assured that the necessary groundwork has now been laid, and implementation is imminent.
This ethanol policy is seen as a crucial step for Nepal, not only in reducing fossil fuel consumption but also in addressing environmental concerns. With rising global fuel prices and increasing awareness of climate change, integrating ethanol could significantly benefit both the economic and environmental sectors. The government is confident that this initiative will promote a sustainable energy future for Nepal.