Prakash Kafle/Kathmandu. The Government of Nepal has introduced a policy allowing ethanol to be blended with petrol. The “Order on Blending Ethanol in Petrol, 2082 (2025/26)” issued by the Council of Ministers was officially published in the Nepal Gazette on Friday, making the policy effective.
According to the government, the policy aims to promote industries based on domestic raw materials, create employment opportunities, increase the use of agricultural and biological resources, and reduce Nepal’s dependence on imported energy.
Under the new provision, the Nepal Oil Corporation can blend up to 10 percent ethanol per liter of petrol depending on availability. The Cabinet also retains the authority to increase or decrease this blending ratio if necessary.
Raw materials permitted for ethanol production include molasses, Napier grass, agricultural and forest biomass waste, straw, corn cobs, wheat husks, cassava, spoiled grains, yeast, and other required chemicals. However, to prevent misuse of food resources, grains meant for human consumption are prohibited from being used for ethanol production.
Industries must produce ethanol only from the approved raw materials and are required to sell their output exclusively to Nepal Oil Corporation. This rule ensures that ethanol use remains limited to blending with petrol.
Manufacturers must follow environmentally friendly production methods and maintain quality standards. They are also required to test the quality of ethanol in their own laboratories, while Nepal Oil Corporation will conduct additional quality checks for every tanker before purchasing.
The price of ethanol will be determined each fiscal year based on recommendations from a government-appointed committee. If a new price is not fixed in time, the previous year’s rate will remain valid. The updated price will come into effect every year from mid-July (Shrawan 1 in the Nepali calendar).
Nepal Oil Corporation will sign purchase agreements with ethanol-producing industries. The producers must supply the agreed quantity at the specified location and time. If the agreement is violated, compensation can be claimed under existing laws.
Responsibility for transporting ethanol will lie with the producers. Since ethanol is highly flammable and easily absorbs water, strict safety measures must be followed during transportation. The concerned ministry will prepare and enforce detailed standards for safe storage, blending, and transport.
पेट्रोलमा इथानोल मिसाउने व्यवस्था: अधिकतम १० प्रतिशतसम्म अनुमति
