In order to curb India’s dependence on imported crude oil, the Ministry of Petroleum and Natural Gas (MoPNG) has stated that it is planning to unveil a new policy on biofuels. The government has been promoting the use of biofuels for a number of years, but has had limited success. The country imports 82 per cent of its crude oil requirement and the government is targeting to cut it down to 67 per cent by 2022. The MoPNG claims that public sector companies invest approximately $2 billion on research and development of second-generation biofuel refineries across the country. Increased use of biofuels, higher domestic oil and gas production, greater energy efficiency and a faster switch to renewable power and electric vehicles are the various factors that can help the country to reduce its crude oil imports. In order to incentivise the use of the cleaner fuel, the Ministry of Road Transport and Highways (MoRTH) intends to request the Ministry of Finance to reduce the goods and services tax on biodiesel to 5 per cent from the current 18 per cent.