India’s move towards ethanol blending and renewable energy is aiding in lessening the nation’s reliance on imported crude oil, as per Krishnakumar Gopalan, former Chairman and Managing Director of Bharat Petroleum Corporation Limited. Gopalan highlighted that about 85% of India’s crude oil demand is met through imports, exposing the economy to global trends and price variations. To tackle this issue, India has implemented a 20% ethanol blending in petrol, with plans to further accelerate this process to decrease dependency on crude imports.
Gopalan emphasized the significance of increasing renewable assets like solar, wind, and hydrogen, along with exploring hydrogen retail outlets, as part of India’s fuel strategy. He also praised oil marketing companies for efficiently managing fuel supplies amidst global uncertainties, ensuring minimal disruptions except in localized crises. Despite the surge in global crude prices, Gopalan noted that oil companies have absorbed a substantial portion of the cost burden to mitigate the impact on consumers.
Regarding fuel prices, Gopalan mentioned that the current under-recovery on petrol stands at approximately Rs 13 to Rs 14 per liter, while for diesel, it is close to Rs 38 per liter. He expressed optimism about the decreasing crude prices and positive negotiations, foreseeing potential relief from significant price hikes, which would benefit both consumers and the crude oil economy.
