Ban on Diesel Four-Wheelers

May 9, 2023

India is set to ban the use of diesel-powered four-wheelers in cities with over 10 lakh population by 2027, according to a report commissioned by the oil ministry. It recommended a gradual elimination of motorcycles, scooters, and three-wheelers that are powered by internal combustion engines by the year 2035.

Key Points from the Report

To prepare for the phasing out of internal combustion engine two/three-wheel vehicles by 2035, EVs need to be promoted.
During transitional period, there should be policies supporting the use of ethanol-blended fuel with a gradually increasing blend ratio.
Four-wheelers, including passenger cars and taxis, must be substituted with electric and partially to ethanol-blended petrol with almost 50% share in each category.
To boost electric vehicle use in India, a “targeted extension” of incentives must be given under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles scheme (FAME) to beyond March 31.
Natural gas usage must be boosted in industries and automobiles since it is a greener alternative than liquid fuels like diesel. India aims to raise the share of natural gas in its energy mix to 15% by 2030 from 6.7% now.
By 2040, there is an anticipated peak in petrol and diesel demand in India, followed by a reduction due to the increasing use of electric vehicles. Additionally, LPG demand is predicted to decrease after 2030 as electrification of cooking is expected to increase, leading to complete electrification by 2070.
The rate of transition in fossil fuel consumption is mainly dependent on the shift in the auto sector to EVs. If there is an active shift to EVs because of policy mandates, refineries may be repurposed or closed down rapidly to generate renewable energy or biofuel and reduce the carbon footprint.

« Previous Post Next Post »