Economy - Reports
Government has adopted a multi-pronged strategy to reduce import dependency on crude oil As on : 13-Dec-24  12:18

Ministry of Petroleum & Natural Gas stated in a latest update that government has adopted a multi-pronged strategy to reduce the import dependency on crude oil which, inter alia, include demand substitution by promoting usage of natural gas as fuel/feedstock across the country towards increasing the share of natural gas in economy and moving towards gas based economy, promotion of renewable and alternate fuels like ethanol, compressed bio gas and biodiesel, creating electric vehicle charging infrastructure, refinery process improvements, promoting energy efficiency and conservation, efforts for increasing production of oil and natural gas through various policies initiatives, etc. For promoting the use of Compressed Bio Gas (CBG) as automotive fuel, Sustainable Alternative Towards Affordable Transportation (SATAT) initiative has also been launched.

Government has also taken several other steps to insulate common citizens from high international prices, which included diversifying the crude import basket, invoking the provisions of Universal Service Obligation to ensure availability of petrol & diesel in domestic market, increasing the blending of ethanol in petrol, etc. Recently PSU OMCs have carried out intra-state freight rationalisation. This has benefitted consumers located at remote areas, far from Petroleum Oil & Lubricants (POL) Depots in form of reduced Petrol and Diesel prices in remote parts within the states. This initiative has also reduced the difference between the maximum and minimum retail prices of Petrol or Diesel within a state.

During the last ten years, Ethanol Blending Program (EBP) by Public Sector OMCs has resulted in approximate savings of more than Rs. 1,08,655 crore of foreign exchange as on 30.09.2024. The ethanol produced from sugar-based feedstock has helped sugar factories to reduce its surplus sugar inventory and generate revenue early to clear the dues of cane farmers. During the last ten years, EBP has helped in expeditious payment of approx. Rs. 92,409 crore to the farmers as on 30.09.2024. It is anticipated that 20% ethanol blending in petrol is likely to result in payment of more than Rs. 35,000 crore annually to the farmers. India’s energy sector is undergoing a significant transformation with a growing focus on cleaner sources of energy. Government is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030.

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