Indian Government concerns about the global scenario
In some sectors, the burning of gasoline, diesel, and other fossil fuels for transportation, military, and construction vehicles now account for the largest part of greenhouse gas emissions in the US economy. Combustion of these fuels accounts for one-third of US greenhouse gas emissions and is associated with emissions from the extraction and transportation of these fossil fuels.
It contributes to smog, releases carcinogens like benzene, and contaminates the air, water, and soil in communities along highways, train stations, ports, and low-income communities. Today, Brazil which has been producing cane-based ethanol for more than 40 years to reduce its sugar glut, reduce dependence on oil imports, and increase energy security, has a large fleet of “flex-fuel” cars powered by a blend of ethanol and gasoline.
Indian Government and Ethanol Blending in fossil fuel
India is pushing for more cars to operate on ethanol from sugar, a move that could reduce the country’s dependence on fossil fuels. The food ministry said that India is on track with its ethanol program to remove up to 6 million tons of sugar from fuel production by 2025. That is almost the entire amount that India exports to the world market.
Prime Minister Narendra Modi announced in June a five-year plan to blend 20% ethanol into gasoline by 2025. While India’s opposition parties criticized the Modi government for its high fuel tax and declining consumption in rural areas, economists praised the move as cautious. The government still has plenty of room to cut fuel prices by two-thirds before it is taxed again.
Indian Government and Crude Oil Prices
International crude oil prices define the cost of fuel in India and they are one of the factors contributing to the rise of gasoline and diesel. When central and state taxes are added, the cost of diesel accounts for 54% of the retail price of a liter of diesel. Since 2010, the price of gasoline has been set by the government and reviewed every fortnight. In fact, the base price for petrol has fallen from 47.12 rupees in May 2014 to 37.29 rupees in June 2021, while central taxes have risen from 10.39 rupees in May to 32.9 rupees in June according to oil planning and analysis cell data.
On June 16, petrol in Delhi cost 37.29 rupees per liter based on the actual price. The petrol and diesel prices are adjusted at 6 am each day, as the crude oil price on the international market affects fuel prices in India. On June 15, the price of Brent crude oil was $74.65 a liter and India was 54.70 rupees. High fuel prices are hitting the middle class, which is enthusiastic about Narendra Modi.
The indirect impact of high fuel prices on aggregate inflation has hit the poor particularly hard. India raised taxes on gasoline and diesel on Saturday in a desperate bid to boost government revenues as tax revenues slump amid the weakest economic growth in six years and the effects of the coronavirus come. Bloomberg reported that a record drop in gasoline inventories last week threatened to push pump prices in America to $3 a gallon for the first time in six months.
For Narendra Modi’s government, inflation appears to be under control. Inventories fell to 13.6 million barrels, the lowest level in weekly data since 1990, when a freeze wrecked much of the Gulf Coast refinery, according to the U.S. Energy Information Administration.
Indian Government and Electric Vehicles
Hero Electric taking the lead on July 21, followed by Athar Energy and next is Okinawa. The changing scenario of Electric Vehicles must bring smiles to every enthusiast’s face. Finally, we can see the things happening. People have started gaining faith in electric vehicles, the EV Manufacturers, and the Government. Most of the sales were in the two and three-wheeler segments, but growth was also strong in the passenger car segment.
As gasoline prices exceed the INR of 100 per liter in most parts of the country, the economic appeal of electric two-wheelers has increased. In recent months, many state governments have also developed their own electric vehicle policies, offering direct subsidies to vehicles to reduce costs. Moreover, the carbon price will raise revenue to support other important programs. Further elements of these programs and the federal climate policy will be discussed in the following sections.
If you ask the leaders of the opposition today why they are not protesting against the increase in fuel prices, they will say that it is about the media not showing them. Asked why they remain silent on the issue, media experts say Congress has done nothing about it. The stupid thing is that public opinion is inexplicable to the stock market.
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