Pakistan Biofuels Industry Calls for E5 Mandate
Islamabad, Pakistan | April 29, 2008 by
The Pakistan Ethanol Manufacturers Association (PEMA) and Pakistan Sugar Mills Association (PSMA) have called on the central government to impose an E5 ethanol mandate and to amend excise rules to waive permit fees and excise duties on ethanol.The association believes the imposition of excise fees is outdated in light of the country’s focus on diversifying its energy source model.
Pakistani oil marketing companies have called on Pakistan to explore alternatives to ethanol. The companies say that there is no shortage of petroleum in the country with shortages being most acute in the diesel market.
Pakistan, which spends $11 billion (€7.4 billion) on oil imports, had formed the biofuels task force to investigate the production of 65,000 tonnes of biofuels required to fulfill a 5% ethanol mandate.
Oil marketing companies have also been critical of the slow conversion to biofuels in neighbouring India. A report in the Economic Times states that Indian oil marketing companies are unable to switch to E5 blends that would save them $1.52 for every gallon of petrol replaced with ethanol.
Earlier, the Indian central government revealed a plan to cut taxes on ethanol as an incentive to stimulate demand. Excise duty stands at 15%, plus state taxes of 4-20%, plus import fee, permit fee, license fee, administration fee and state excise taxes.
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