A committee constituted by Prime Minister Shehbaz Sharif has recommended the voluntary blending of 5 per cent ethanol with petrol, subject to commercial viability and consultations with oil marketing companies, according to the media reports.
Headed by Minister for Petroleum Ali Pervaiz Malik, the committee was tasked with examining various fuel-blending options. It has submitted its report to the Prime Minister’s Office, which has asked that the findings be presented to the deputy prime minister. Industry officials noted that Pakistan’s current ethanol output from sugarcane crushing is limited to around 400,000–450,000 tonnes annually. Ethanol exports from the country have previously been used for blending to produce E10–E15 fuel, but most domestic ethanol production is currently exported due to more attractive international prices.
The committee also carried out a comparative pricing analysis, which showed that ethanol is consistently cheaper than petrol. On average, the price difference was estimated at $225 per tonne. However, the panel observed that because ethanol has lower energy content, its price would need to be 20–30 per cent lower than petrol to be cost-effective. It further pointed out that substantial investment would be required to develop ethanol storage and blending infrastructure.
Vehicle compatibility was also reviewed. The committee found that newer vehicles are compatible with E5 and E10 fuels. However, Pak Suzuki Motor Company has indicated that older vehicles and two-wheelers are not compatible with ethanol-blended fuels. The panel also discussed the challenge of ensuring sustainable supplies, particularly during periods when higher export prices encourage producers to sell ethanol overseas.
Pakistan previously experimented with ethanol blending through a pilot project introducing 10 per cent ethanol (E-10), implemented by state-owned Pakistan State Oil (PSO) between 2010 and 2012. The initiative began in Sindh and was later expanded to Punjab.
The programme was discontinued in 2012 after ethanol supplies became unavailable, as rising export prices prompted producers to prioritise overseas sales. PSO was the sole company responsible for the initiative, which was introduced as a separate fuel grade and required significant investment. The project also faced resistance from the auto industry, with Pak Suzuki declaring E-10 unsuitable for use in its vehicles.
