New Delhi, May 25 (IANS) India’s push towards ethanol blending and renewable energy is helping reduce the country’s dependence on imported crude oil, Krishnakumar Gopalan, former Chairman and Managing Director of Bharat Petroleum Corporation Limited said on Monday.
Speaking to IANS, he said the government had realised early the need for an energy transition and has been working closely with oil companies to reduce vulnerabilities arising from high crude imports.
Speaking about India’s fuel strategy, Gopalan said around 85 per cent of the country’s crude oil requirement is imported, making the economy highly exposed to global developments and price fluctuations.
“To address this challenge, India has introduced 20 per cent ethanol blending in petrol, which is gradually being accelerated further to cut dependence on crude imports,” Gopalan said.
“That is one step where we are trying to reduce our dependency. The second step is we have made our efforts in increasing renewable assets, be it solar, wind, hydrogen. We are even looking at hydrogen retail outlets,” he told IANS.
Gopalan also highlighted the role played by oil marketing companies in managing fuel supplies efficiently despite global uncertainty.
“They have been managing supplies very well. There are hardly any cases of dry outs except where there are localised crises and the oil companies, I think, have done a very commendable job in managing the supplies,” he added.
On fuel prices, the former BPCL chief said oil companies have absorbed a major part of the cost burden despite rising global crude prices.
According to him, the current under-recovery on petrol is around Rs 13 to Rs 14 per litre, while diesel under-recovery is close to Rs 38 per litre.
“The loss in petrol is about 13 to 14 rupees and diesel is about 38 rupees, so whatever increase has happened is only partial,” he stated.
“The good fact is crude has started coming down, there are positive indications about negotiations working and if that does happen, that will be a great relief, there won’t be much increases required that will offset and the crude economy also will benefit,” he told IANS.
–IANS
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