India calls for expanding biofuel production amid higher oil prices
India has called for expanding the production and consumption of biofuels to strengthen energy security amid rising oil prices. As OilPrice reports, this position was expressed by Tarun Kapoor, an adviser in the office of India’s prime minister, at the India Sugar and Bio-Energy Conference.
Ethanol and compressed biogas
According to Kapoor, the country must make maximum use of available resources to develop biofuels. This includes ethanol, compressed biogas, and new areas for their use in transport, industry, and energy. He also said there was a need to expand the market and make fuller use of already established capacity.
India is the world’s third-largest importer of crude oil. According to OilPrice, before the start of the war, which the publication calls a war with Iran, nearly half of India’s oil imports came from the Middle East. Since the start of this conflict, the country has been paying a high price for alternative oil supplies.
More current news is available on the UA.News Telegram channel Telegram.
Fuel blend with 85% ethanol
In June, India launched a new fuel blend containing 85% ethanol as part of a program to develop flex-fuel transport. Oil and Natural Gas Minister Hardeep Singh Puri said at the time that flex-fuel vehicles could reduce crude oil imports, support the rural economy through demand for ethanol, and promote low-carbon mobility.
Import costs increased
Last week, the average price of oil imported by India exceeded $100 per barrel. Within several days, the international Brent benchmark also reached $100 per barrel for the first time since July.
India’s spending on crude oil imports in April-June was 60% higher than in the same period a year earlier, despite somewhat lower import volumes. In July, the import bill was 41% higher year-on-year. OilPrice links the rise in costs to reduced oil flows from the Middle East and risks to shipping in the Strait of Hormuz.
