Being Petroleum-Independent

The Hindu     24th February 2021     Save    

Context: India should reduce its energy import dependence to tackle rising fuel prices.

Steps taken for managing the demand for petroleum products

  • Formulation of fuel efficiency standards: Subjected heavy-duty vehicles to fuel efficiency standards.
    • However, India’s 2022 fuel efficiency standards for passenger cars are nearly 20% less stringent than the European Union’s standards.
  • Constituted the National Electric Mobility Mission Plan (NEMMP): However, the focus is more on hybrids rather than electric vehicles. 
  • Increase energy security:
    • Bioethanol mixing in petrol: to nearly 8% by volume under the 2018 National Policy on Biofuels. 
    • Encouraged multiple fuel pathways in the transport sector.
    • Steps towards transition to electric vehicles: 
      • Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme focusing largely on electric vehicles.
      • Fiscal and non-fiscal incentives to encourage a transition to electric vehicles.

                More steps required to reduce dependence on petroleum

                • Formulate a zero-emissions vehicle (ZEV) programme:  That mandates vehicle manufacturers to produce a certain number of electric vehicles. (like in China and the United States)
                • Strengthen fuel efficiency requirements: for new passenger cars and commercial vehicles and formulate fuel efficiency standards for two-wheelers.
                • Complementary policies:
                  • Extend the FAME scheme: to all passenger cars, commercial vehicles and agricultural tractor.
                  • Extend fiscal incentives to all kinds of vehicles.
                  • Stepping up investments in charging infrastructure.
                  • Tax vehicles based on fuel efficiency rather than based on vehicle length and engine size.

                Conclusion: Government should enhance long-term energy security by wielding the regulatory tools at its disposal.