Former Finance Minister Miftah Ismail has suggested that ethanol blending in fuel could be a practical way to significantly reduce petrol prices in Pakistan, urging the government to carefully evaluate the proposal before implementing it.
Speaking on the proposal, he said there was no harm in assessing the feasibility of ethanol blending but warned against making premature policy decisions without proper groundwork. He noted that if ethanol production proves commercially viable, sugar mills would naturally expand into the sector to benefit from an additional revenue stream.
Miftah said the impact on oil marketing companies would depend on government policy, particularly if a fixed blending ratio and pricing mechanism are introduced. He added that companies could potentially benefit by sourcing ethanol at lower prices and retaining margins.
He suggested that the Ministry of Petroleum, in coordination with Pakistan State Oil and the sugar industry, could conduct a quick initial assessment to evaluate the idea, though he remained skeptical about immediate implementation due to infrastructure and logistical constraints.
Highlighting global trends, he said ethanol blending becomes economically viable when crude oil prices exceed $100 per barrel, while at typical levels of $60 to $80 it is less attractive.
He pointed to countries like Brazil and the United States, where strong agricultural bases and policy support underpin ethanol use, adding that Pakistan may face challenges in replicating such models in the short term.
This guy is such a joke.
Ethanol blend destroys engines. It craters the mileage and not suitable for modern cars.
Also ethanol can’t be produced easily. It requires specific equipment and ethanol engines can only use it.
Try using it in a regular and your engine will be broken.
India tried this nonsense under nitin gatkari and results were terrible.