New Delhi, May 25 (IANS). Promotion of ethanol blending and renewable energy by the Government of India will help in reducing the country’s dependence on crude oil. This statement was given by Bharat Petroleum Corporation Limited Chairman and Managing Director (MD) Krishnakumar Gopalan on Monday.
Speaking to news agency IANS, Gopalan said that the government had long recognized the need for energy transition and is continuously working with oil companies to reduce concerns related to crude oil imports.
He further said that India imports about 85 percent of its crude oil requirement from abroad, which makes the country’s economy sensitive to fluctuations in crude oil.
According to Gopalan, understanding this challenge, the government had started mixing 20 percent ethanol in petrol.
“This is the first step towards reducing our dependence. The second step is that we have made efforts to increase renewable energy sources, be it solar energy, wind energy or hydrogen. We are also looking at hydrogen retail outlets,” he told IANS.
Gopalan also highlighted the role of oil marketing companies in efficient management of fuel supply despite global uncertainty.
He further said, “They are managing the supply very well. There has rarely been a shortage of fuel except in local crises and I think the oil companies have done a commendable job in managing the supply.”
On fuel prices, the former BPCL chief said oil companies bore a major part of the cost despite rising global crude prices.
According to him, the current under-recovery on petrol is around Rs 13 to 14 per litre, while the under-recovery on diesel is around Rs 38 per litre.
He told IANS, “The good thing is that crude oil prices have started falling, there are positive signs that the talks will be successful and if that happens, it will be a big relief, there will not be a need for much increase so that the loss can be compensated and the economy of crude oil will also benefit.”
–IANS
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