The Planing Commission has observed that ethanol blending as fuel would cut down petroleum prices to ensure energy security in the coming years when industrial sector's dependence on gas would increase manifold.
In its 'energy security plan' submitted before President Pervez Musharraf and Prime Minister Shaukat Aziz, the Planning Commission Deputy Chairman, Dr Akram Shaikh, has forcefully recommended blending of ethanol as fuel. He was of the view that ethanol blending could bring petrol prices substantially down and encourage its use as fuel for vehicles.
He listed the countries, which have successfully experimented the use of blended ethanol to cut down petroleum prices for the end-users, and advocated that Pakistan should take advantage of the locally produced ethanol by at least 10 percent blending.
With the growing petroleum prices in the international market for a long time now its use is shrinking, slowly and gradually. The vehicle owners prefer CNG use for low cost. The Planning Commission said it wanted a change in the proposition. It suggested that the government should make optimal use of energy to take the maximum benefit of its each kind of fuel, including ethanol, and leave gas as much as possible for industrial use.
Sources said that the President and Prime Minister agreed to Planning Commission's proposal that finally led to federal Cabinet's approval some time back.
The Cabinet had approved the proposal, putting aside Petroleum Ministry's strong opposition. The Petroleum Ministry had opposed the idea, saying that with the new kind of blended ethanol fuel the country would be left with more surplus petrol. However, it could not make the Cabinet change its plan.
Source said that the government was going for blending 10 percent ethanol as fuel to make petroleum cost effective as Prime Minister Shaukat Aziz plans to launch the new kind of fuel in next couple of days.
Sources said that arrangements were being made for the Prime Minister's visit to a petrol pump in the twin cities of Islamabad and Rawalpindi for launching of ethanol-blended fuel some time this week.
The ethanol blending with petrol is an old idea of the sugar industry. The Pakistan Sugar Mills Association (PSMA) had time and again approached the government with a proposal that it should allow at least 10 percent ethanol with petrol to cut down its prices for vehicles' use, but each time it met negative response. The Petroleum Ministry always had negative remarks to PSMA suggestion, sources added.
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