Energy Justice

Energy Justice
 

News: A pragmatic and balanced strategy has helped India to keep prices of petrol, diesel and gas under check.
 

Background:
 As the world’s fastest-growing major economy, India will account for approximately 25 per cent of global energy demand growth between 2020-2040, as per the BP energy outlook and IEA estimates.
 

How has India managed to avert crisis of rising prices of Crude oil?
 Prices of diesel in India have gone down in the last one year at a time when petrol and diesel prices went up by 35-40 per cent in the US, Canada, Spain and the UK. India, despite being a major importer of crude oil and natural gas, has been able to control the prices of petrol and diesel. This was made possible due to:
 Massive cuts in excise duty and VAT rates by several states
 Oil PSUs absorbing huge losses to ensure that the rising prices of crude oil and natural gas in the international market were not passed on to Indian consumers
 Imposing an export cess on petrol, diesel and ATF and windfall tax on domestically produced petroleum products
 Over the years, India has expanded its network of crude oil suppliers from 27 nations to 39 nations.
 Expanding petrochemical production.
 Accelerating efforts to move towards a gas-based economy by increasing the share of gas from the current 6.3 per cent to 15 per cent by 2030.
 India took a giant stride in her biofuel revolution by launching E20 — 20 per cent ethanol blended gasoline.
 India is also setting up five second generation ethanol plants, which can convert agricultural waste into biofuel.
 Other policy initiatives like The National Green Hydrogen Mission and increased support/incentives to adapt to Electric vehicles, installation of alternate fuel stations (EV charging/CNG/LPG/CBG) are all a step towards ensuring energy security, energy justice and energy independence, inspired under the visionary leadership of PM Modi.