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| PSO launches ethanol blended fuel in Karachi |
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Sunday, August 16, 2009
By our correspondent
KARACHI: The Pakistan State Oil (PSO) launched ethanol blended fuel called ‘E10 gasoline’ here on Saturday which would be cheaper by Rs2.40 per litre compared to petrol.
However, the OGRA has yet to notify the price of the fuel. Federal Minister for Privatisation and Petroleum and Natural Resources Syed Naveed Qamar was present to mark the occasion.
The minister said the government would ask the Oil and Gas Regulatory Authority (OGRA) to immediately notify the price of the fuel, produced by mixing 10 per cent ethanol with petrol.
Talking to mediamen, he said the government was trying to rely more on indigenous fuel. “Pakistan is an agricultural country and we produce enough ethanol to blend it with petrol to make environment-friendly and cost-effective fuel.” The economic benefits of this fuel are long-term and for this the government has levied less tax to facilitate E10 gasoline production, he added.
E10 gasoline has been introduced by the PSO in Karachi after the opening of the first outlet in Islamabad, as part of government’s strategy to promote alternative energy resources.
This will not only help the country in reducing its import bill but will also provide the motorists with an economical fuel option.
Irfan Qureshi, Managing Director of PSO said: “The introduction of ethanol blended fuel will prove as a landmark for energy security of the country, cleaner environment and welfare of the people. With the introduction of E10 gasoline, Pakistan has joined those few nations who sell blended fuel and save precious foreign exchange for economic prosperity of their countries.”
Ethanol, a byproduct of molasses through distillation would not only be comparatively cheaper for motorists but will also enhance performance of the engine through lead removal as it posses high octane rating for better fuel economy. Ethanol also offers a way to reduce green house gas emissions from transportation sources.
He also said Pakistan produces some 400,000 tons of ethanol annually and if all the petroleum marketing companies in Pakistan start blending ethanol, “we would only be able to consume only 180,000 tons of ethanol.”
He said the government would annually save $100 to $130 million foreign exchange with E10 fuel consumption. The research has determined that ethanol presents less pollution risk to drinking water. It would also benefit the farmers, who would feel attracted to grow more sugarcane and get adequate compensation.
Other countries in the world where ethanol is already being used as fuel are USA, Denmark, Sweden, Brazil and India.
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ISSN 1563-9479 
