Increase in petrol, diesel and electricity price is certain

According to a Spark report by Cambridge Econometrics, portrait-fuel (fossil fuel)-related things, such as transportation and household energy, contributed about 20% to India’s annual currency rate between April and May 2022. India’s annual exchange rate at that time (Explanation C) ranged between 7 to 8%.

The report pointed out that between January 2021 and August 2022, fuel and electricity prices in India rose almost five times faster (57%) than the overall consumer request (12%). This was reflected in consumer spending. For example, it is estimated that users in the Delhi region will spend 25% more on fuel and electricity in 2022 than in the previous year, and almost 50% more in 2020 – around Rs 4,100 . This was even more evident in the higher expenditure on electricity for the rural whole as a proportion of their income.

This despite the fact that the Government of India budgeted the equivalent of about 0.5% of GDP to shield the public from the full impact of the increase in global petroleum fuel tariffs. Recently the G20 Energy Transaction Working Group held in Bangalore discussed on continued use of parenteral fuels for the next 15-20 years.

Karl Heinemann, lead author of the report, said, “The cost of renewable energy (renewable energy) has been falling rapidly over the past decade. It is now a well-known fact that renewable energy is now much cheaper than petroleum-based fuel electricity generation. In fact, India is one of the hottest locations in the world for new renewable energy projects and these costs are expected to fall”.

According to the RBI, the renewable energy situation in the LINK is the reason for the decline in the exact same way. This should guide the policy consensus in India to increase spending on renewable energy to ensure that the country becomes a mainstay of electricity generation, rather than, say essentially, being locked into ocean energy. While subsidies for renewable energy have been given over the past year, those for parenteral fuels still cost four times more than renewables in India. Petroleum fuel-based power transmission is entirely through tariffs, taxes, subsidies and price caps, making it difficult to fully budget renewable energy in India.

India is one of the world’s fastest growing economies, accounting for more than 10% of total global energy demand growth, and is expected to grow rapidly in the coming decades. Rather, the high domestic energy costs and national import bills from the re-partnership and the Ukraine-Russia war suggest that countries like India should ensure energy security and growth by combining investments in renewables.

The rapid growth of renewable energy is particularly important in diversifying India’s energy mix. Over the long term, the expansion of renewables as well as increased transportation and household energy consumption electricity will reduce domestic and business customers’ exposure to volatile petroleum fuels and limit the need for moderate government spending.

“The tight relationship between energy and currency in India makes a strong case for India to decarbonize its economy. There is certainly evidence to support the argument that renewable energy could reduce the impact of electricity directives in the long run. The reimbursement (MWh) of new solar PV and wind power plants in India is reported to be significantly higher than that of new coal-fired plants and natural gas-based power generation. The integration of renewable energy in power generation has fallen short of the mark in India’s fine market.”