The Karnataka government and oil marketing firms are currently in a dispute over claims of excessive ethanol blending in petrol. While officials must verify these reports, India needs a broader political consensus to secure its energy supply. A calibrated strategy is essential to protect the country from rising global vulnerabilities.
Summary
Ethanol blending has once again come under the scanner, but while claims of excessive blending deserve scrutiny, the more pressing concern is building political consensus beyond state-Centre squabbles to secure the country's energy supply.
With the Karnataka government claiming to have found excessive ethanol blending in petrol, and oil marketing firms denying such claims, another slugfest between the Congress-ruled state government and the Bharatiya Janata Party (BJP)-ruled Union government is brewing.
It is important to verify and assess claims of excessive ethanol blending, and remove all doubts regarding the use of ethanol-blended petrol. But it is even more important to arrive at a political consensus on a national energy security strategy.
Ethanol blending was initiated more than two decades ago as part of a policy thrust to lower oil imports. Subsidies for electric vehicles (EVs) and renewables are also partly driven by similar considerations.
However, it is worth noting that a rise in EV production could increase India's import bill in the short run. The rising focus on EVs and renewables globally has raised prices of aluminium, copper and tin to record levels, the World Bank said in its Commodity Markets Outlook report last month.
As a net importer of energy and commodities, India needs a calibrated strategy to boost energy security.