KATHMANDU: Minister for Industry, Commerce and Supplies Anil Kumar Sinha has said that blending 10% ethanol into petrol could reduce Nepal’s annual petroleum imports by around Rs 6 billion.
Speaking at an interaction organized on Sunday by the Society of Economic Journalists-Nepal, Sinha said the decision to blend ethanol with petrol has reached the implementation stage after years of study and discussion.
Stating that studies on ethanol blending have been ongoing for two decades, Sinha said the Ethanol Blending Order, 2026, is in the process of being published in the Nepal Gazette following cabinet approval.
“Blending 10% ethanol in petrol can reduce petrol imports by 130 million liters annually,” he said. “This would save nearly Rs 6 billion in foreign currency each year. It will help retain money earned through the hard work of Nepalis. The savings could generate a new cycle of economic activity at the local level.”
Sinha expressed confidence that ethanol production would boost agricultural output, such as sugarcane, expand the use of agricultural land, and energize the domestic economy.

Himal Press