Former BPCL Chairman Krishnakumar Gopalan has described the introduction of 20% ethanol-blended petrol (E20 fuel) as a major step towards reducing India's dependence on imported crude oil and lowering the country's massive oil import bill, Navbharat Times reported.
Gopalan said the rollout of E20 fuel marks the first concrete move towards gradually cutting reliance on foreign oil. He added that India's next major focus should be strengthening domestic renewable energy infrastructure, including solar energy, wind power and green hydrogen.
He said oil companies are also studying the feasibility of setting up hydrogen retail outlets in the future, similar to conventional petrol pumps, to meet emerging energy demands.
Amid fluctuations in global crude oil prices, Gopalan praised government-owned oil marketing companies for maintaining fuel supply and keeping domestic fuel prices stable across the country.
He said that despite some local technical issues, there had been no major fuel shortage or dry-out situation in any part of India. According to him, oil marketing companies managed to maintain uninterrupted energy supply through efficient supply chain management and their global sourcing network.
Speaking on fuel pricing, Gopalan revealed that oil companies are currently facing significant financial pressure due to under-recoveries caused by selling fuel below cost despite high international crude oil prices.
He said oil companies are losing nearly Rs 13 to Rs 14 per litre on petrol sales and around Rs 38 per litre on diesel sales, placing a heavy burden on their balance sheets.
However, he also pointed to signs of relief for the Indian economy and consumers, stating that global crude oil prices have started easing gradually.
Gopalan said ongoing diplomatic discussions between major oil-producing and oil-consuming countries are showing positive progress. If these talks continue successfully, he said oil companies may be able to recover earlier losses without the need for sharp increases in domestic fuel prices.
He added that India's long-term energy future lies in green energy and domestic clean fuel production.
According to Gopalan, increasing capacity in solar power, wind energy and ethanol production will help reduce the outflow of money spent on imported energy. He also said the National Green Hydrogen Mission could play a major role in making India energy self-reliant while reducing pollution and dependence on the global crude oil economy.