- The global community was hoping against hope that the truce/ceasefire between the US-Israel duo and Iran would provide much-needed relief from the debilitating economic challenges, courtesy of severe restrictions on the critical energy supplies. The increasingly fast-paced developments consequent to the US-Israel attack on Iran have had a cascading effect on the neighbouringcountries in West Asia/the Middle East. The outcome led many countries to introduce measures not only to curb spiralling energy procurement prices but also to ensure adequate supplies due to heavy restrictions imposed by the warring countries. How did Indian leadership fare till now? How do we ensure staying afloat by insulating ourselves? Let’s dwelve.
PC: News18
- As we know, the fuel prices have been hiked in the last few weeks. The commercial and domestic prices of LPG have increased considerably. Most importantly, all the petroleum products and allied products reliant on the same have seen a steady increase in prices. As the war hots up again, the Indian leadership must make a policy that better insulates us from energy shocks. A two-week ceasefire, that stretched to two months, may have lulled us into believing the worst was over. But fresh strikes between Israel and Iran have again exposed the fragility of West Asia and global energy security. Oil has ticked up, and it might pinch our pockets again. This is a risk we must live with, because alternatives like EVs and biofuels like ethanol and compressed biogas aren’t ready.
PC: India Today
- Though all our petrol is blended with 20% ethanol, note how controversial it is, for a reason. As reported, most of our cars and bikes made over the past 15 years were designed for only a 10% blend. We know that outside Delhi and its neighbourhood, even older vehicles are widely used. Thus, regardless of how much ethanol India can make, we, as consumers, aren’t ready for it. Compare this with Brazil, where any day now, the government is expected to increase mandatory ethanol blending from 30% to 32%. It’s not a problem there, because the vast majority of Brazil’s vehicles have been flex-fuel since 2003. They can deal with any ethanol blend, from 0-100%. Brazil could do this simply because, in 2003, EVs were still in the future.
PC: MMCM
- So, it’s automakers’ bet on flex-fuel system, and the ethanol industry’s investments in capacity, paid off. Will the same bets work in India now, when electric vehicles are becoming popular? Last fiscal, 4.5% of all cars sold in India were electric. What if rising fuel prices raise their share to double digits this year? If the future is electric, is an ethanol push worthwhile, especially when it requires heavily subsidized fertilisers? And what about farmers? They’re getting good rates for sugarcane and corn to make ethanol today, but what will they do when demand for petrol-ethanol blends starts tapering? Biogas is another option, but the current capacity is negligible. How many years will the industry take to scale up and substitute imported CNG? Govt should consult industry and researchers to make a long-term plan and then implement it rapidly.
