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Ethanol mix will make petrol cheaper
KATHMANDU, NOV 21 - With an aim to use ethyl alcohol in the transportation sector and reduce dependency on imported petrol, the Cabinet has approved a proposal to mix ethanol with petrol. It will also effect a reduction in the price of petrol.
The decision, which was taken during the last Cabinet meeting, allows mixing of 10 per cent ethanol in petrol, according to Dinesh Chandra Pyakurel, Secretary at the Ministry of Industry, Commerce and Supplies (MoICS), who informed The Kathmandu Post, "We’re planning to enforce the decision from January 15, 2003."Once implemented, it will directly lower petrol price by about Rs. 4 per litre, said a member of the committee. The price of ethanol is far cheaper at Rs. 10 per litre while consumers are currently paying Rs. 54 for a litre of petrol.
The exercise to use ethanol in petrol was started about three years ago when experts, going by international practices, suggested to the government to follow the trend. A committee constituted to study the issue had identified the idea that would save the country millions of rupees otherwise spent on the import of petrol.
"This will directly lessen the importation of petrol by 10 percent," said a senior official at the Nepal Oil Corporation (NOC). "Considering the quantity of petrol import, which averages at 60,000 kilolitres per annum, this will save the country’s foreign currency reserve by about Rs. 300 million at the current import rate," he added.Mixing of ethanol in certain proportion with petrol does not affect the engines of vehicles. Instead, it lessens the exhaust of carbon. Thus it has positive impact on the environment.
Given the current types of engines in use in the country, the committee has concluded that the mixing could be done up to the proportion of 24 per cent in the vehicular fuel without any adverse impact on the engine. Internationally, the proportion of such mixing is higher.
"However, we recommended to the government to adopt it on a lower side to begin with," said the committee member.
Meanwhile, the MoICS has constituted a committee headed by the Director General of the Department of Standards and Metrology to work out the technicalities and procedures to implement the decision.
"The decision on whether to mix the two products at NOC’s storage facilities or at the retail supply outlets would be taken after the committee submits its report," said Secretary Pyakurel.The latest decision would also support sugar manufacturers that are going through a rough phase in recent years. Ethanol is a by-product of sugar refinery and is mostly used in fermenting wine and other alcoholic beverages. It is also supplied to paint manufacturers for use as a raw material in enamel production, among others.
"The decision has opened a new business avenue for sugar producers," said ministry officials.
However, experts note that the major challenge for the government would lie in maintaining the proportion of mixture. "Being a cheaper product, petrol suppliers may tend to increase the proportion of the ethanol content," they cautioned.Posted on: 2003-11-20 09:52
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