ISLAMABAD: The Petroleum Division is all set to take up draft of volunteer-based ethanol-blending policy to reduce reliance on imported fuel and promote renewable energy. The Division is expected to approve the draft that would allow petrol to be mixed with up to 10 percent ethanol.
India’s ethanol-blending program succeeded in cutting oil imports. With India now on track to achieve a 20 percent ethanol blend in petrol.
A draft proposal for Pakistan’s Ethanol Blending Policy is set to be presented to the Economic Coordination Committee (ECC) of the Cabinet. The plan follows the formation of a government committee by Prime Minister Shehbaz Sharif on June 23, 2024 to develop a national ethanol strategy.
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The committee, led by the Minister of Petroleum including the Finance Minister has finalized the proposal. Minister for Petroleum also conformed to a national assembly’s standing committee on petroleum. He said the policy would not be mandatory to adopt for oil marketing companies or oil refineries.
The policy aims at to gradually increase ethanol-blended petrol across the country. Oil refineries will be encouraged to voluntarily mix up to 1-5 percent ethanol with petrol initially.
In 2009-10, the government introduced E-10 petrol, which contained 10 percent ethanol, on a trial basis. The fuel was initially sold in Sindh and later expanded to Punjab at a slightly lower price than regular petrol. However, the project was discontinued after a year due to limited ethanol availability, concerns from car manufacturers, and rising global ethanol prices.
A government committee, led by the Minister of Petroleum, will oversee the project, review progress every six months, and make necessary adjustments.
For the long-term, the proposal suggests increasing ethanol production and exploring alternative sources beyond sugarcane molasses. It also recommends working with car manufacturers to develop engines that can support higher ethanol blends, the minister apprised the parliamentary panel.
Copyright Business Recorder, 2025
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