A committee formed by Prime Minister Shehbaz Sharif has recommended the voluntary blending of 5% ethanol with petrol, based on commercial viability and consultations with oil marketing companies, reported The Express Tribune.
The panel, headed by Petroleum Minister Ali Pervaiz Malik, was tasked with exploring fuel-blending options. It submitted its findings to the Prime Minister’s Office, which has asked the committee to present the report to the deputy prime minister.
According to the media report, industry sources said Pakistan’s current ethanol production from sugarcane crushing stands at around 400,000 to 450,000 tonnes per year. Most of the output is exported due to attractive international prices, although some ethanol has been used domestically for blending into E10–E15 fuels.
The committee also analysed pricing trends and found ethanol to be consistently cheaper than petrol, with an average difference of $225 per tonne. However, it noted that ethanol’s lower energy content requires its price to be 20–30% lower than petrol to be cost-effective. The panel also recommended significant investment in ethanol storage and blending infrastructure, as per the media report.
Vehicle compatibility was reviewed as part of the study. The committee found that newer vehicles can use E5 and E10 fuels, but older cars and two-wheelers are not compatible, according to Pak Suzuki Motor Company. Ensuring a consistent supply was flagged as another challenge, particularly when higher export prices encourage producers to sell abroad.
Pakistan previously ran a pilot project blending 10% ethanol (E-10) through state-owned Pakistan State Oil (PSO) from 2010 to 2012, initially in Sindh and later in Punjab. Under the project, E-10 petrol was priced Rs2.50 per litre lower than regular petrol, with Rs1.70 per litre allocated for infrastructure development.
The programme was discontinued in 2012 after ethanol supplies became limited, as rising export prices made overseas sales more profitable. Only PSO was responsible for the project, which required substantial investment, and Pak Suzuki had warned that E-10 fuel was unsuitable for its vehicles.
The committee’s recommendation signals a potential revival of ethanol blending in Pakistan, aimed at reducing reliance on imported fuel and supporting local ethanol production.
