'E10 petrol' launched: government to impose nominal levy on Ethanol fuel, says Naveed

The government has decided to impose nominal levy on Ethanol fuel, a by-product of molasses, to promote alternative energy sources. This was stated by Naveed Qamar, the federal minister for privatisation, petroleum and natural resources, at the launching ceremony of 'E10 petrol' at a Pakistan State Oil (PSO) outlet, here on Saturday.
He lauded the efforts made by PSO in this regard, saying that E-10 petrol would provide cheaper fuel to motorists besides playing vital role in minimising environmental hazards. To a question, he said the government had directed the Oil and Gas Regulatory Authority (OGRA) to expedite the process of formulating its rates to facilitate motorists.
The federal minister stressed the need for promoting alternative energy sources for sustainable economic growth, saying the economy could not bear more shocks pertaining to international energy crisis. Earlier, PSO managing director, Irfan Qureshi, said the E10 would create healthy impact on imports bills as the country could save some $100 million to $150 million in this connection.
He said presently the difference between petrol and E10 was Rs 2.40, which could be stretched to Rs 6, if sugar millers, who earned around 27 per cent profit from this substance, slashed their returns, suitably. The introduction of Ethanol blended fuel will prove a landmark for energy security of the country, cleaner environment and welfare of the people.
With the introduction of E-10 gasoline, Pakistan has joined those few nations who sell blended fuel and save precious foreign exchange for economic prosperity of their countries. Ethanol is not only a cheaper fuel for motorists but would also enhance performance of the engine through lead removal as it contains high octane rating for better fuel economy. Ethanol also reduces green house gas emissions from transportation sources.
The research has determined that ethanol presents less pollution risk to drinking water. It would also benefit farmers, who would feel attracted to grow more sugarcane and get adequate compensation. The other countries in the world where ethanol is already being used as fuel are USA, Denmark, Sweden, Brazil, and India.