CRY News | Hardeep Singh Puri: India to meet 25% of global energy demand by 2040, reveals plan

Jan 10,2023

Petroleum Minister Hardeep Singh Puri said the country’s energy security is based on a four-pronged strategy. These strategies include diversifying supply sources, exploring and producing as much oil and gas domestically as possible, using alternative energy sources as part of the energy transition, and adopting gas and green hydrogen. Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Tuesday said India will contribute 25% of global fuel demand by 2040 and achieve 20% ethanol blend in petrol by 2025.

The country meets 85 percent of its total oil demand and 50 percent of natural gas through imports. Ethanol obtained from sugarcane and other agricultural products is being blended with petrol to reduce dependence on imports. Puri said there is a target of 20 percent ethanol blending in petrol by 2025.

He said, “India has managed to come out of the world’s worst energy crisis since the 1973 oil crisis. This is attributed to the four-pronged energy security strategy. The strategy is to diversify supply sources, explore and produce as much oil and gas domestically as possible, and use alternative energy sources as part of the energy transition, including a gas-based economy, green hydrogen and electric vehicles (EVs). ) to be accepted.

In 2006-07, India imported oil from 27 countries. This number will increase to 39 in 2021-22. New suppliers include Colombia, Russia, Libya, Gabon and Equatorial Guinea.

Russia’s attack on Ukraine has increased energy prices but this has not affected India’s consumers as much as public sector retail oil companies have not raised rates despite the increase.

Puri said the price of diesel, the most widely used fuel in the country, has increased by only three percent between December 2021 and December 2022. On the other hand, it increased by 34 percent in America, 36 percent in Canada, 25 percent in Spain and 10 percent in Britain.

Diesel price was Rs 86.67 per liter in December 2021, rising to Rs 89.62 in a year. On the other hand, the price of petrol increased from Rs 95.41 to Rs 96.72 per liter during this period.

The reduction in excise duty has brought relief to price hikes. The government hiked excise duty on petrol to Rs 13 per liter and diesel to Rs 15 per liter in 2020 as global energy prices softened due to the pandemic. The hike was rolled back in two phases in November, 2021 and May, 2022.

Also, some states have reduced VAT (value added tax) or local sales tax on fuel to provide relief to consumers.

Puri said the government is moving ahead with the target of increasing the oil and gas exploration area to 500,000 square kilometers by 2025 and 1000,000 square kilometers by 2030. Exploration in large areas will yield new fields of oil and gas. This will increase the production of oil and gas at the domestic level, which will reduce the dependence on imports.

Expansion
Petroleum Minister Hardeep Singh Puri said the country’s energy security is based on a four-pronged strategy. These strategies include diversifying supply sources, exploring and producing as much oil and gas domestically as possible, using alternative energy sources as part of the energy transition, and adopting gas and green hydrogen. Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Tuesday said India will contribute 25% of global fuel demand by 2040 and achieve 20% ethanol blend in petrol by 2025.

The country meets 85 percent of its total oil demand and 50 percent of natural gas through imports. Ethanol obtained from sugarcane and other agricultural products is being blended with petrol to reduce dependence on imports. Puri said there is a target of 20 percent ethanol blending in petrol by 2025.

He said, “India has managed to come out of the world’s worst energy crisis since the 1973 oil crisis. This is attributed to the four-pronged energy security strategy. The strategy is to diversify supply sources, explore and produce as much oil and gas domestically as possible, and use alternative energy sources as part of the energy transition, including a gas-based economy, green hydrogen and electric vehicles (EVs). ) to be accepted.

In 2006-07, India imported oil from 27 countries. This number will increase to 39 in 2021-22. New suppliers include Colombia, Russia, Libya, Gabon and Equatorial Guinea.
Russia’s attack on Ukraine has raised energy prices but this has not had much of an impact on consumers in India as public sector retail oil companies have not raised rates despite the increase.

Puri said the price of diesel, the most widely used fuel in the country, has increased by only three percent between December 2021 and December 2022. On the other hand, it increased by 34 percent in America, 36 percent in Canada, 25 percent in Spain and 10 percent in Britain.
Diesel price was Rs 86.67 per liter in December 2021, rising to Rs 89.62 in a year. On the other hand, the price of petrol increased from Rs 95.41 to Rs 96.72 per liter during this period.

The reduction in excise duty has brought relief to price hikes. The government hiked excise duty on petrol to Rs 13 per liter and diesel to Rs 15 per liter in 2020 as global energy prices softened due to the pandemic. The hike was rolled back in two phases in November, 2021 and May, 2022.

Also, some states have reduced VAT (value added tax) or local sales tax on fuel to provide relief to consumers.

Puri said the government is moving ahead with the target of increasing the oil and gas exploration area to 500,000 square kilometers by 2025 and 1000,000 square kilometers by 2030. Exploration in large areas will yield new fields of oil and gas. This will increase the production of oil and gas at the domestic level, which will reduce the dependence on imports.