Nepal to blend ethanol into gasoline to relieve gas shortage, cash crunch

In Nepal, lawmakers are addressing a gasoline and cash shortage by directing the Nepal Oil Corporation to blend ethanol into conventional gasoline. The national government will issue $76 million in bonds to settle outstanding bills with the Indian Oil Company, which is Nepal’s sole gasoline supplier.

Nepal’s troubles are continuing indications of the impact of rising oil prices on South Asian economies — now bordering on an “oil shock”.  India has rushed through an E5 mandate and is planning to impose an E10 mandate as of October 23008 to cope with the impact of oil price hikes.
Nepal has been eyed as a potential jatropha-producing nation, and a pilot program is underway here, although the yield is unproven in the arid Nepalese growing conditions.

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