Why in news:

• Recently, the demand for cheaper biofuel and base oil is rising in Rajasthan, with diesel becoming costlier and getting out of the reach of most in the state and nationwide.
• The state government is therefore looking at the new opportunity to popularise the use of the home-made green fuel
• Taking a step forward in this regard the state government has recently rolled out a biofuel policy and attracted investments in the sector.
  
  
   

Recent progress and issues:

• But the policy of the government has caused disconcertment among various stakeholders, with petrol and diesel dealers who are losing some business, are complaining about the retailing policy.
• Recently, the Rajasthan Petroleum Dealers’ Association had written to chief secretary of Rajasthan that the Centre’s biofuel policy does not allow retailing of biofuel by producers.
• As per their version, it is only through oil marketing firms of the government that retailing can be done.
• But the CEO of Biofuel Authority of Rajasthan has refuted the allegations and has clarified there are clear guidelines for retailing of biofuel.
• According to him, the Centre’s guidelines allow private retailing of biofuels and the state policy has adhered to all the guidelines while allowing retailing.
  
  
   

Biofuels in Rajasthan:

• The state government has constituted the Biofuel Authority under the ministry of Panchayat raj and Rural development.
• The policy of sale of bio diesel in the state has even been applauded by Union transport ministry in the recent past.
• Rajasthan was the first state in the country to roll out the biofuel policy and has attracted investments of about Rs 125 crore with 11 plants already operating.
• Cumulatively, the 11 plants have the capacity to produce 4.20 lakh litres a day, but the current production is 2 lakh litres a month which is a marginal figure against the diesel sales of 4.50 lakh litre per day.
• However, the production is slated to increase in the wake of recent steep hike in diesel prices.
• Biofuel costs around Rs 70 per litre which has now become a lower amount in comparison to diesel that has reached unprecedented prices.
  
  
   

Issue of base oil mixing:

• The petroleum industry body has also raised the issue of base oil being sold in the garb of biodiesel. Base oil costs around Rs 70 per litre, much less than the price of normal diesel which have risen over Rs 100 recently.
• However, the Biofuel Authority of Rajasthan has said that the allegations of base oil being sold under the garb of biofuel is wrong.
• In fact, the government should check how much of this spurious base oil is mixed with diesel that we buy from fuel stations which is in fact a scam by petroleum lobby.

Base oil:

• Base oil is a waste derivate of diesel and other oils and is used in industrial applications.
• But after the spike in fuel prices, illegal sale of base oil as a motor fuel has increased significantly.
• It not only damages parts of vehicles, but is also highly polluting.
• There have been demands from various quarters that the government should fix the end-user uses of the base oil so that its illegal and consumer harming use can be checked.