Oil Imports Current Affairs - 2019
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The government had introduced the FAME II scheme to boost the adoption of electric and hybrid vehicles in the country. The Confederation of Indian Industry (CII) has made the following observations about the scheme:
- It estimates that India can save 64% of anticipated road-based mobility-related energy demand and 37% of carbon emissions in 2030 by pursuing a shared, electric, and connected mobility future.
- This reduction in energy demand would result in the reduction of 156 million tonnes of oil equivalent (Mtoe) in diesel and petrol consumption for that year and net saving of approximately $60 billion in 2030 at present oil prices.
- Further, this would give impetus to India’s vision of reducing oil imports by 10% by 2022.
- The electric vehicle penetration in India is currently at just 1%, FAME alone is not enough to reach the 30% electric vehicles target by 2030.
- CII calls for boosting of the domestic manufacturing of vehicles, components and batteries needed to be boosted, along with skill development across the value chain, and the strategic sourcing of key raw material.
- For transport to go truly green, there must be accompanied by a rising share of renewables along with environmentally sustainable batteries.
Transport sector in India continues to be the highest oil consuming sector and the use of diesel and petrol grew at 5.9% and 9.9% respectively in the last 10 years. India’s import dependency on oil has increased from 78.3 per cent of total consumption in 2014-15 to settling at a new high of 83.7% in the 10-month period of FY19. Hence FAME scheme has multiple benefits for both the economy and environment.
Reports suggest that the US could terminate the sanctions waivers it granted to some importers of Iranian oil after it re-imposed sanctions on Iran last year.
Ending of Sanction Waiver
- Reports indicate that the US has already communicated to seven countries viz. Japan, South Korea, Turkey, Italy, Greece, China and India- that they will no longer be exempt from US sanctions if they continue to import oil from Iran after their waivers end on May 2.
- The ending of sanction waiver is part of the US strategy to exert maximum pressure and isolate Iran.
- The US has stated it wants to deprive the outlaw regime of the funds that it has used to destabilise the Middle East for decades and incentivise Iran to behave like a normal country.
The news of the ending of sanctions waiver exerted upward pressure on global prices of crude. Further. US has stated that the US along with Saudi Arabia and UAE have agreed to take timely action to assure that global demand is met as all Iranian oil is removed from the market.