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Will electric mobility scupper India’s multi-billion-dollar oil refinery expansion plans?
News:
Government projection over electric vehicles in the next decade created concern among the oil refining industry.
Facts:
- The share of Electric vehicle in India was recorded at 0.02 percent in 2015 but with the current trend it is expected the share will reach 25 per cent by 2025 and 40 per cent by 2030.
- The working group in the Ministry of Petroleum has predicted that India will require 472 million tonnes (mt) of petroleum products by 2040.
- Based on this assumptions and scenarios, the committee have concluded that the petroleum based fuel demand projections may be reviewed in 2020 to fulfil the demand.
- Since the share of electric vehicle are on rise It is also expected the transition to a mix of electric vehicles and renewables will cut the requirement to 387 mt. and if a transformation occurs through large scale deployment of electric vehicles the requirement will dip drastically to 266 mt.
- Transition to electric vehicle will have direct bearing on the India’s refining capacity expansion plans and it may impact and subdue investment in the refining sector.
- Though, electric vehicles will save more than 30 per cent on fuel costs and help reduce India’s oil imports it is very important to have a clarity over the number and type of new vehicle manufactured annually so that a comprehensive plan can be developed to avoid any major investment in Oil refinery industry.
