Petroleum Division calls meeting to discuss ethanol blending in petrol

KARACHI: The Petroleum Division has scheduled a meeting with the oil sector on Wednesday (today) to deliberate on the blending of ethanol into petrol.

The meeting will include officials from the Oil and Gas Regulatory Authority (Ogra) and representatives from local refineries to assess the availability of fuel-grade ethanol and its potential integration into refinery operations.

The idea of blending ethanol into petrol was first raised in July this year when the Petroleum Division initiated discussions on the matter. A committee was tasked with formulating a detailed plan and policy for the production and supply of ethanol-blended petrol, following directives from the prime minister.

However, stakeholders in the oil sector remain sceptical about the feasibility of ethanol blending. Industry insiders argue that such initiatives have been attempted in the past but failed due to commercial impracticality. They highlighted that during the late Pervez Musharraf’s government, ethanol blending was frequently discussed but never implemented successfully. Refinery representatives expressed concerns that blending ethanol is not financially viable for refineries and the sugar industry, which is responsible for ethanol production. While ethanol prices are currently low, industry experts warn that they could increase at any time, making the venture economically unsustainable.