The government has published the Ethanol Blending in Petrol Order 2026 in the official Gazette, requiring petrol to contain up to 10 percent ethanol. The policy aims to reduce dependence on imported energy while encouraging domestic production using raw materials such as molasses, crop residue, and agricultural waste. Under the order, Nepal Oil Corporation (NOC) will procure ethanol solely from local industries at prices set annually by a committee headed by the secretary of the Ministry of Industry. To safeguard food security, the regulation bans the use of grains suitable for human consumption in fuel production. A technical committee including representatives from the Ministry of Finance and the Nepal Academy of Science and Technology (NAST) will recommend tax incentives and subsidies for farmers and industries participating in the initiative.
