Prime Minister Narendra Modi called for a big push for ethanol blending in a webinar on ‘Energy for Sustainable Growth’ as crude oil prices hit the highest level in nearly a decade, following global supply chain disruptions after sanctions on Russia.
Oil prices rebounded and rose on Friday after a volatile trading day in the previous session. Brent crude future rose over 1.5 per cent to $112 as supply concerns still and on expectations Russia’s war in Ukraine could hit the global economy from higher prices to dampened spending and investment.
Analysts also said an Iran deal would not replace Russia’s disruptions.
On Thursday, the international benchmark for oil – Brent crude futures, rose to within 16 cents of $120 a barrel, the highest since 2012, before falling to settle at around $110, on hopes the United States and Iran will agree soon to a nuclear deal that could add output to a badly undersupplied market.
PM Narendra Modi said the government was promoting ethanol blending, and in the latest budget, extra differential excise duty on unblended fuel has been provided.
“We will need to modernize sugar mills and distilleries further. The up-gradation of their technology will be necessary. By 2030, we have to achieve 50 per cent of our installed energy capacity from non-fossil energy sources,” he added.