Impact of Biodiesel Blending on Indian Oil Market by 2030

In the recent years, India’s demand for fuel and petroleum products has increased rapidly, leading to 87.3% reliance on imported crude in 2022-23, up from 85.5% in 2021-22 (PPAC, 2023). This further indicates the need for increased investment in domestic oil production alternatives to enhance energy security and reduce import dependence. As the nation seeks to transition towards a greener future, the adoption of biodiesel presents a promising area to reduce emissions and foster sustainable growth in the transport sector. Government’s commitment to achieve 5% biodiesel blending (blend of 5% biodiesel with 95% of conventional diesel) in the country’s fuel mix by 2030 as outlined in National Policy on Biofuels, 2018 is a crucial step towards reducing transport emissions and enhancing energy security with assisting India’s oil import dependence.