It, indeed, is gratifying to learn from a Recorder Report of the prospect of sale of ethanol blended petrol in the twin cities of Islamabad and Rawalpindi. For it will mean an end to a long drawn controversy over the advisability of blending ethanol with petrol as part of the multi-directional exercise to rid the country of the energy famine it has long remained faced with and the prohibitive cost of petrol.
Recalling that the Pakistan Sugar Mills Association had been vigorously persuading the government for allowing at least 10 percent ethanol with petrol to cut down its prices for vehicles' use, the Recorder Report also has it that the matter had remained blocked by the Petroleum Ministry's persistent opposition to the very idea. However, the breakthrough was made possible by the Planning Commission.
Reference in this context has been made to the Commission's 'energy security plan', submitted to President Pervez Musharraf and Prime Minister Shaukat Aziz, by the Commission's Deputy Chairman, Dr Akram Shaikh. This plan forcefully recommends blending of ethanol as fuel, and convincingly arguing that it would cut down petroleum prices to ensure energy security in the coming years when industrial sector's dependence on oil and gas is expected to increase manifold.
According to Dr Shaikh, with constantly rising petroleum prices over a long time, its use has been shrinking.
This stands adequately demonstrated by more and more vehicle owners' switching to much cheaper CNG. Moreover, the Commission did well to advise optimal use of energy, while deriving maximum benefit from all sources of fuel, including ethanol, but with the exclusion of gas, to whatever extent possible, leaving enough of it for industrial use. Understandably, as such, the President and the Prime Minister agreed to this proposal, thereby paving the way for the Federal Cabinet's approval.
The Petroleum Ministry's strong opposition was cast aside that was based on the plea that extensive use of ethanol blended fuel would leave the country with surplus petrol, an argument, which appears to have been influenced by overblown fears of the oil marketing companies. (The increasing demand for oil in the world continues to be met by the countries, producing oil in excess of their domestic requirements.) In so far as the firmness of the government's decision in the matter is concerned, it may be recalled that, chairing a meeting last month, Prime Minister Shaukat Aziz had accorded approval to a pilot project for sale of ethanol blended petrol at Pakistan State Oil (PSO) petrol pumps in Lahore, Karachi and Islamabad.
On that occasion, he had also stated that on its encouraging results, hopefully, the blended fuel would be made available all over the country. He had also pointed out that blended fuel is not only cheaper but also environment friendly because of higher percentage of octane. Again, citing Brazil and India among the countries benefiting from its use, he had said that the provinces would be directed to amend the relevant rules and that other oil marketing companies would be encouraged to market the blended fuel.
It will also be noted that he had lauded PSO and Hydrocarbon Institute of Pakistan (HDIP) for launching the project, saying it would have a positive and long-term impact on the government's plans to meet energy crisis. Needless to point out, the brightened prospects of sale of ethanol blended petrol through the pilot projects would help bring Pakistan in line with Brazil and other sugarcane producing countries. For one thing, it will benefit not only the motorists and transport operators, but also provide a fillip to the country's sugar economy in its own way. For the sugar industry it would mean a dream come true.
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