Flexing Indian Logistics with flex fuels.

India aspires to become the 3rd largest economy by 2030, following the pattern the energy appetite will be spiked by approximately 3.5 times. Considering the import bill of India, we spend almost 20% of the total expenditure in paying up for the energy requirements.

Road Logistics sector being the most important pillar of economic growth, accounts for the 28.5% of the total diesel consumption of India. If the trend of utilization correlates with our forecasted growth trajectory, we will be ending up paying 25Lakh Crores($333Bn) annually for the crude import bills.

The situation further deteriorates as the International Crude oil rate & the dollar exchange rate is again a function of Macro economic factors. For every 10% hike in crude oil, India’s Current Account Deficit rises by 0.4%.

We as a nation cannot grow at the aspired growth rate till the time we start reducing our energy dependency and become partially to fully Atmanirbhar in our energy hunger.

India might not be fortunate to have huge oil reserves, but being the agrarian economy for so long we can produce ethanol via agricultural produce, which when blended with petrol-diesel can help us cutting down of crude consumption. Flex fuels are the blended form of petrol-diesel with ethanol which can be used in cars/Trucks in the same manner with some modifications in the IC engines.

With the target of reaching e20(20% ethanol blending) by 2023–24 and ultimately to e100, India will knock off many of the current challenges of CAD, Agrarian distress, high logistics cost etc. .

Road Transport sector which heavily relies on diesel, bearing almost 50% expense of it, will witness approximately 25–30% drop in the fuels prices. This will eventually be passed in to the entire supply chain and ultimately will bring the logistics cost down.

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