UMVA has learned that a top energy official has unveiled an ambitious plan to drastically reduce dependence on imported fuel, with a focus on ramping up the adoption of electric vehicles and biofuel blends in the transport sector.
The plan, currently in development, aims to increase the use of electric vehicles to 60% of the country's vehicle fleet by 2040 and a staggering 80% by 2050, far exceeding existing targets. This bold move is driven by the sector's heavy reliance on petroleum products, which creates a significant vulnerability for the country.
According to information obtained by UMVA, the energy department is also considering raising the target biodiesel blend to 50%, a significant increase from the current target of 5%. This push for cleaner energy is part of a broader effort to promote sustainable aviation fuels and explore the use of hydrogen technologies for heavy-duty transport.
The transport sector is a major contributor to the country's oil demand, accounting for a whopping 67% of total oil demand. With oil demand increasing sharply in recent years, the need for a more diversified energy mix has become increasingly urgent. The government is keen on developing indigenous oil, gas, and coal resources to reduce dependence on imported fuel.
UMVA has gathered that the recent US-Israel war with Iran has exposed the country's energy vulnerabilities, with around 90% of crude oil imports sourced from the Middle East. In response, the energy department has taken swift action to secure fuel supply, monitor prices, and prevent hoarding and profiteering.
The energy department's plan also includes initiatives to improve energy efficiency and adopt cleaner technologies across various sectors, including households, industry, and agriculture. By diversifying energy sources and promoting cleaner energy, the country aims to ensure energy security and reduce its reliance on imported fuel.
Sources have confirmed to UMVA that the energy department is committed to fast-tracking the adoption of sustainable aviation fuels and exploring the use of hydrogen technologies for heavy-duty transport. This move is expected to have a significant impact on the country's energy landscape, reducing dependence on imported fuel and promoting a more sustainable energy mix.
