KATHMANDU: Minister Anil Kumar Sinha says blending ethanol with petrol could significantly reduce Nepal’s fuel imports and ease pressure on the country’s economy.

Speaking at a programme titled “Ethanol Blending Policy: Prospects, Challenges and Implementation” in Kathmandu, the Minister for Industry, Commerce and Supplies said implementing a 10% ethanol blend in petrol could cut annual petrol imports by around 130 million litres.

He said the measure would save billions of rupees in foreign currency and help narrow Nepal’s trade deficit, which has been driven largely by petroleum imports.

According to Mr Sinha, the policy is also a key step towards strengthening energy security. Greater use of biofuel is expected to reduce carbon emissions from vehicles, lower air pollution and support environmental protection efforts.

He added that ethanol production would rely on sugarcane and other agricultural raw materials, potentially revitalising the domestic sugar industry and boosting farmers’ incomes.

The minister said the policy could contribute to higher domestic production, job creation and the long-term commercialization of agriculture.