Asia boosts biofuels amid Iran war

The Iran war has caused significant disruptions to fossil fuel supplies, particularly through the closure of the Strait of Hormuz, leading to skyrocketing crude oil prices and fuel shortages across Asia. In response, nations like India, Indonesia, and Malaysia are aggressively pursuing biofuel initiatives to reduce their dependence on imported fossil fuels and enhance energy security. India has proposed allowing vehicles to run on high ethanol blends (85% or 100%), increased petrol and diesel prices, and banned sugar exports to ensure raw material for ethanol production. Prime Minister Narendra Modi has urged citizens to conserve fuel. Indonesia, under President Prabowo Subianto, is increasing its biodiesel blending to 50% using Palm oil, while Malaysia is gradually increasing its biodiesel mix to 15%. These policies aim to cushion the economic shock but also raise concerns among environmental experts and drivers regarding vehicle mileage, competition with food crops, water consumption, and potential deforestation.