Nepal Approves Proposal for Ethanol Blending in Petrol

08-Jan-2026 08:57 PM

Kathmandu. With the aim of reducing crude oil (petroleum) imports and pollution, the Nepalese federal government has approved a proposal to allow the blending of ethanol in petrol. Currently, a 10 percent ethanol blend in petrol has been approved.

The central cabinet recently approved the proposal. This grants the Nepal Oil Corporation (NOC) permission to blend ethanol with petrol and sell it in the domestic market. This is expected to reduce expenditure on oil imports.

Although discussions on the issue of blending ethanol in petroleum products began 20-21 years ago, a decision was postponed for various reasons. Now, a final decision has been made, and orders have been issued to implement it.

Following this new decision, officials estimate that Nepal's petrol imports will decrease by approximately 7 million liters.

The Managing Director of NOC stated that the process of blending ethanol with petrol will now formally begin. While the cabinet has approved the proposal, the corporation has not yet received written notification.

After receiving the official order, the necessary framework for ethanol production in the country will be prepared, and procurement will begin.

A legal basis has now been established for the domestic production and use of ethanol. This will reduce dependence on fuel imports.