Nitin Gadkari, the Union minister of road transport and highways, expressed concerns about India’s growing reliance on fossil fuel imports. He highlighted that the country’s import bills for fossil fuels are projected to exceed Rs 25 lakh crore within the next five years, a significant increase from the current Rs 16 lakh crore.
Gadkari emphasised that, apart from addressing pollution, reducing fossil fuel imports is a crucial driver for India’s transition to cleaner automotive fuels.
He cited the staggering Rs 16 lakh crore expenditure on fossil fuel imports as a major challenge. During a fireside chat at the 63rd annual session organised by ACMA, he stated, “The basic problem is Rs 16 lakh crore of fossil fuel imports. It will be 25 lakh crore in five years.” Gadkari underscored the urgency to adopt environmentally cleaner fuels to mitigate the economic impact of high import bills. The fireside chat was moderated by Hormazd Sorabjee, Editor, Autocar India.
Import Bill Trends: Oil and Gas Sector
Data from the Ministry of Petroleum and Natural Gas reveals that the net import bill for Oil and Gas reached US$11.2 billion in December 2022, compared to US$10.7 billion in December 2021.Crude oil imports accounted for US$11.9 billion, while LNG imports amounted to US$1.6 billion in December 2022. Additionally, exports in the same period totaled US$4.6 billion.
In light of a report the International Energy Agency (IEA) released in October 2022, Gadkari’s comments should make sense. The IEA report predicts that India’s fossil fuel imports and associated bills are expected to double over the next two decades due to the scale of development in the country. The report further states that if current energy policies remain unchanged, India’s energy demand will grow by over 3% annually.