CRISIL report shows ethanol, CNG and EVs reversing demand growth for fossil fuels

In India, the latest CRISIL report shows demand growth in gasoline and diesel combined will likely decline to 1.5% per annum this decade, compared with 4.9% in the last, because of increasing blending of ethanol with petrol, and rising usage of vehicles powered by compressed natural gas (CNG) and electricity (EVs). The trend will also be persuaded by policy interventions as India targets net zero emissions by 2070.

Taking cue, oil refiners would be altering their production mix in favor of alternatives such as petrochemicals, which should also support their profitability.