Prime Minister Narendra Modi on 10 May 2026 called on citizens to cut petrol and diesel use, naming public transport, carpooling and electric vehicles as immediate priorities, as India’s 85 per cent crude import dependence and a widening current account deficit tighten pressure on household budgets.
Citizens must reduce dependence on petrol and diesel. Public transport, carpooling and electric vehicles are not future options — they are today’s imperative.
PMO Statement · Prime Minister's Office · 10 May 2026
Why now
India imports over 85 per cent of its crude oil requirements. Petroleum products, including mineral fuels, oils, waxes, and bituminous substances, account for approximately 27 per cent of the total import bill, making the economy acutely exposed to supply tightness and geopolitical disruptions driving the current global energy squeeze. The transport sector consumed 16 per cent of India’s total final energy in 2023, underlining how directly fuel demand on roads feeds the import bill. The Ministry of Petroleum and Natural Gas is coordinating with state-run oil companies on demand-side measures, while the Ministry of Road Transport and Highways has been asked to fast-track charging infrastructure approvals.
The gap between target and reality
NITI Aayog’s roadmap requires 30 per cent of all new vehicle sales to be electric by 2030. EVreporter Intelligence data puts passenger-vehicle EV penetration at 4.5 per cent for FY 2025-26, while Federation of Automobile Dealers Associations (FADA) retail sales data shows the segment’s market share climbing to 5.8 per cent in April 2026 — still 24.2 percentage points short of the 2030 target with four years remaining. At the current pace of annual growth, India would need to more than triple its EV adoption rate every year to hit the target — a scale of acceleration it has not yet demonstrated.
The Ministry of Heavy Industry has been central to rolling out the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, which earmarks support for electric buses and two-wheelers across Indian cities. The Faster Adoption and Manufacturing of Electric Vehicles II (FAME II) scheme covers electric two-wheelers and public buses, with active beneficiary pools in Bengaluru and Pune.
Metro cities carry the load
The directive bears most directly on Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Pune, which together account for a disproportionate share of personal vehicle fuel consumption. Delhi operates 4,538 electric buses under a single urban transit authority — the largest such fleet in India — a model the Centre is pressing other state capitals to replicate.
ℹ️ India's energy exposure: key figures
- India imports over 85% of crude oil needs
- Petroleum products (mineral fuels, oils, waxes, bituminous substances): ~27% of total import bill
- Transport sector: 16% of India’s total final energy consumption (2023)
- NITI Aayog EV target: 30% of new vehicle sales by 2030
- Passenger-vehicle EV share: 4.5% for FY 2025-26; 5.8% in April 2026 (FADA)
What happens next
The Ministry of Petroleum and Natural Gas is expected to issue a demand-management advisory to state governments within weeks. NITI Aayog will review EV uptake metrics at its next quarterly session, with state-wise charging station deployment targets on the agenda. The Ministry of Road Transport and Highways is finalising revised EV corridor guidelines for national highways, with rollout pegged to the second half of 2026.
FAQ
What is the PM E-DRIVE scheme?
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