{"id":6593,"date":"2026-05-15T15:01:05","date_gmt":"2026-05-15T15:01:05","guid":{"rendered":"https:\/\/siliconvalleymovingpost.com\/?p=6593"},"modified":"2026-05-15T15:01:05","modified_gmt":"2026-05-15T15:01:05","slug":"iran-war-energy-shock-drives-interest-in-ethanol-and-other-biofuels-across-hard-hit-asia","status":"publish","type":"post","link":"https:\/\/siliconvalleymovingpost.com\/?p=6593","title":{"rendered":"Iran war energy shock drives interest in ethanol and other biofuels across hard-hit Asia"},"content":{"rendered":"

By SIBI ARASU and ANTON L. DELGADO<\/strong><\/p>\n

BENGALURU, India (AP) \u2014 Taxi driver Ravi Ranjan, who lives with his wife and child in New Delhi, said shipping disruptions caused by the Iran war have forced him to pay higher prices for cooking fuel at a time when India\u2019s prime minister is also urging residents to reduce driving and travel.<\/p>

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It\u2019s all hitting Ranjan\u2019s bottom line, he said, as he\u2019s paying three times as much for liquid petroleum gas after facing delays on delivery of the cooking fuel.<\/p>\n

\u201cI used to get a cylinder of LPG for 1,000 rupees ($11), now I pay 3,000 rupees ($31) in the black market,\u201d he said.<\/p>\n

On the other side of the country, in the coastal city of Chennai, Sushmita Sankar, an advertising executive, said her gasoline and cooking fuel expenses are skyrocketing because of the war. Sankar said gasoline blended with ethanol \u2014 the default mix available at fuel stations now \u2014 is also worsening her car\u2019s mileage.<\/p>\n

\u201cFuel expenses are increasing and with only ethanol mixed petrol available, I feel my car\u2019s mileage has reduced in the last year or so,\u201d she said. \u201cAlready our days are busy with work and taking care of our child\u2019s school and other needs. Having to now spend a lot of time to fill my car or buy LPG is making things even more hectic.\u201d<\/p>\n

Against the backdrop of cooking gas shortages and crude oil price increases, India has proposed letting vehicles run on 85%, or even 100%, ethanol. On Friday, India increased its petrol and diesel prices and local news outlets reported panic buying leading to long queues in India\u2019s Odisha state. India has also banned all exports of sugar at least through September to ensure a local supply of sugar, but also to ensure enough raw material is available if ethanol blending levels are to be increased.<\/p>\n

The government claims more ethanol will reduce vehicle pollution, but drivers have concerns about mileage. Environmental experts also say that producing corn, rice and other grains for ethanol can take away from food and livestock needs.<\/p>

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Asia was first and hardest hit by fossil fuel disruptions caused by the Iran war\u2019s closure of the Strait of Hormuz, a critical shipping artery for energy.<\/p>\n

As nations brace for a second wave of impacts, governments want to use more biofuels to slash fuel imports. Indonesia and Malaysia are also pushing policies to increase fuel mixing with palm oil-based substitutes, though experts warn this could drive agricultural expansion and deforestation.<\/p>\n

Despite this war-driven interest, it may still take years for higher fuel blends to hit the road in Asia because of time needed for developing supply chains, researching new blends and testing vehicle compatibility.<\/p>\n