Fuel inefficient India is heading towards an energy crisis, says the author.
India is importing more and more of the
crude oil it needs. The problem is that domestic production has more or less stagnated, but consumption is increasing. But what can be done about it? Is fuel
efficiency the answer? India is still relatively efficient in its fuel use because it is poor - two wheelers dominate the personal transport market. But the share of bigger vehicles is increasing in the country and the lack of a policy to make carmakers pay for environmental costs has spurred this boom. If this trend continues the country will lose the advantage of fuel efficiency it currently enjoys. And the absence of fuel economy standards and weak emission norms do not help the situation either.
The industry says that fuel efficiency would be difficult to calculate and maintain given the road conditions prevalent here. They are worried that consumers will hold them responsible for rising costs. They would prefer to let the market forces decide - but the market is often distorted and does not work perfectly in such situations.
Pushing fuel efficiency beyond the proven limit is not enough. Self-sufficiency is the answer. By framing policies to push commuters to use buses, subways, trains, bikes, or even walk, we will be striking at the very root of the problem. And this will help to dampen the insatiable need for energy, free up road space and clean up the air. Investments in alternative mass transport are also required.
Part of the problem is that
government budgets reflect a bias towards the car industry, at the cost of serious repercussions on energy and pollution. The car industry enjoys hidden subsidies by not paying the cost of pollution and health damage, the cost of using up parking space and maintenance of roads. This effectively means that government is subsidizing the wealthier sections of society in this country. The car industry must be pushed to improve technology significantly. Promoting diesel vehicles in the name of fuel efficiency (without any obligation to meet fuel economy standards and stringent emissions norms) will also work against the government’s stated objectives.
Any increase in the international price of crude hits India badly. The cost of energy will be one of the country’s biggest constraints in India maintaining a gdp growth rate of 8 per cent. The government says that since there is no economic substitute for the transport sector, energy efficiency of vehicles and use of mass transport must have a high priority in the country. The movement of freight by railways would substantially reduce the oil requirements in the coming years.