Nepal has taken another step towards introducing ethanol-blended petrol, with the Bureau of Standards and Metrology releasing a draft standard that lays down quality, storage and labelling requirements
for ethanol fuel.
According to a report by The Kathmandu Post, the proposed standard mandates that ethanol used for fuel blending must be clear, transparent and free from suspended solid particles. It also places strict restrictions on substances that can be used during production.
The draft specifically prohibits the use of harmful denaturants such as methanol, turpentine, ketones and tar, citing concerns that these substances could damage vehicle engines, rubber components and fuel systems.
The Bureau has invited comments and suggestions from consumers, industry stakeholders and experts before the standards are finalised, saying the feedback will help make the framework more practical, scientific and effective.
Nepal Cabinet Has Already Approved Ethanol-Blended Petrol
The draft standards come months after Nepal’s Cabinet approved an order allowing the use of ethanol-blended petrol.
Under the policy, petrol sold in the country is expected to contain up to 10 per cent ethanol, although the government has retained the authority to revise the blending ratio through future Cabinet decisions.
The order also places restrictions on the raw materials that can be used for ethanol production. To avoid any impact on food security, the government has barred the use of edible grains.
Instead, ethanol producers will be permitted to use molasses from sugar mills, Napier grass, agricultural and forestry biomass, rice straw, corn stalks, wheat husks, spoiled grains unfit for human consumption, cassava, yeast and other fermentation-related inputs.
A government-appointed committee will determine ethanol prices before the start of each fiscal year.
Nepal’s Move Comes Amid Debate Over E20 Fuel in India
Nepal’s push towards ethanol blending comes at a time when ethanol-mixed petrol remains a subject of debate in neighbouring India.
India achieved 10 per cent ethanol blending in petrol during 2021-22 and reached the 20 per cent blending target in 2025. The fuel has been promoted as a way to reduce crude oil imports, support farmers and lower carbon emissions.
However, some motorists in India have complained of reduced mileage and concerns about the long-term impact of E20 fuel on vehicle components.
The Indian government has acknowledged that some vehicles may experience a 3-5 per cent reduction in fuel economy when using E20 petrol. At the same time, it has argued that real-world mileage is influenced by several factors, including driving habits, tyre pressure, vehicle maintenance and air-conditioner usage.
Addressing concerns about engine durability and potential damage to rubber parts and fuel lines, the government has maintained that E20 fuel underwent extensive laboratory testing and field trials before its nationwide rollout. According to officials, the testing covered engine performance, corrosion resistance, drivability and long-term durability.
Ethanol itself is not a new automotive fuel. More than a century ago, Henry Ford designed the Model T to run on ethanol, and countries such as Brazil and the United States have blended ethanol into petrol for decades.
With Nepal now moving towards its own ethanol-blending programme, the country will be closely watched to see how the transition impacts fuel costs, vehicle performance and energy security.
