ISLAMABAD – Pakistan is preparing to launch a voluntary ethanol-blending policy aimed at reducing reliance on imported fuel and boosting renewable energy. The Petroleum Division is expected to approve a draft policy that would allow petrol to be mixed with up to 10 percent ethanol.
This initiative follows the formation of a government committee by Prime Minister Shehbaz Sharif in June 2024 to develop a national ethanol strategy. The committee, led by the Minister of Petroleum and including the Finance Minister, has finalized a proposal that will be presented to the Economic Coordination Committee (ECC) of the Cabinet.
The Petroleum Minister confirmed to a national assembly standing committee that the policy will not be mandatory for oil marketing companies or refineries. Initially, refineries will be encouraged to voluntarily mix 1-5 percent ethanol with petrol, with the goal of gradually increasing the blend across the country.
The move draws inspiration from neighboring India, which has successfully reduced oil imports through its ethanol-blending program and is aiming for a 20 percent blend.
Pakistan previously experimented with E-10 petrol (10 percent ethanol) in 2009-10, but the project was discontinued due to limited ethanol availability, concerns from car manufacturers, and rising global ethanol prices.
A government committee, again led by the Petroleum Minister, will oversee the new initiative, conducting bi-annual reviews and making necessary adjustments. Long-term plans include increasing ethanol production, exploring alternative sources beyond sugarcane molasses, and collaborating with car manufacturers to develop engines compatible with higher ethanol blends.ends
