Patna: A recent decision by the Nepal government to blend ethanol with petrol has raised hopes among ethanol producers in Bihar, who see it as a major opportunity to expand their market, Jagran reported.
Nepal’s state-run petroleum company has decided to mix 10% ethanol with petrol in response to disruptions in fuel supplies linked to the ongoing crisis in West Asia. The move is expected to reduce the country’s oil import bill and ease pressure on foreign exchange.
According to industry estimates, Nepal consumes around 730 crore litres of petrol annually. With a 10% blending target, the country will require nearly 73 crore litres of ethanol each year.
However, Nepal’s domestic ethanol production remains limited. Existing plants in the country can produce only about 2–3 crore litres annually, creating a significant supply gap.
Producers in Bihar believe they are well placed to fill this gap. The state has an installed ethanol production capacity of around 84 crore litres. Currently, about half of this output is supplied to oil companies under existing agreements, while the rest remains available.
Industry representatives said Bihar has surplus ethanol, and its proximity to Nepal gives it an advantage by reducing transportation costs. Nepal already imports petrol through routes passing via Bihar, making logistics easier for ethanol supply as well.
At the same time, producers in Bihar have faced challenges due to reduced allocation quotas, which has affected operations. The new demand from Nepal could help offset these concerns.
On the policy front, officials said Nepal will need to formally approach the Government of India for ethanol imports. Once approved, Indian authorities will guide domestic oil companies to facilitate the supply process, including coordination with Nepal’s petroleum firms.
Ajay Kumar Singh, president of the Bihar Ethanol Association, said Nepal’s oil companies are keen to procure ethanol directly from production units. The association has written to Nepalese companies seeking a meeting, and a delegation from Bihar is expected to visit Nepal once discussions are scheduled.
Industry stakeholders say the development could open a new export avenue for Bihar’s ethanol producers while supporting Nepal’s shift towards blended fuels.
