A government committee has recommended allowing refineries to voluntarily blend 5% ethanol with domestically produced petrol, subject to commercial viability, officials said.
The panel, headed by Minister for Petroleum Ali Pervaiz Malik, was tasked with examining options for ethanol‑petrol blending and submitted its report to the Prime Minister’s Office. It was then referred to the deputy prime minister for further consideration.
Officials noted Pakistan’s annual ethanol output from sugarcane crushing stands at about 400,000 to 450,000 tonnes, with most of it exported as export prices are more attractive than domestic use.
The committee’s price analysis showed ethanol is consistently cheaper than petrol by an average of $225 per tonne, but due to its lower energy content, ethanol would need to be priced 20% to 30% below petrol to be cost‑effective for blending. The panel also said significant investment is needed in ethanol storage and blending infrastructure.
Vehicle compatibility was also discussed. The committee found that newer vehicles can use E5 and E10 blends, but older vehicles and two‑wheelers are not compatible with ethanol‑blended fuels, industry sources said.
Pakistan previously piloted a 10% ethanol blend (E10) through Pakistan State Oil between 2010 and 2012, but the project was halted when ethanol supplies became limited and producers preferred exporting due to higher prices.
