A report commissioned by India’s petroleum ministry has recommended a ban on diesel-powered four-wheelers in cities with over 10 lakh population by 2027, and suggested a switch to electric and gas-fuelled vehicles instead.

The report of the panel headed by former oil secretary Tarun Kapoor has also recommended phasing out petrol motorcycles, scooters, and three-wheelers by 2035.

The panel, which submitted its report to the government in February, also recommended that there should be no diesel city buses addition in urban areas in about 10 years. However, the government has not yet accepted the report yet.

According to the report, EVs may be promoted as the "optimal solution" in preparing for phasing out two- and three-wheelers with internal combustion engine by 2035.

"In the intermediate period, policy support for ethanol-blended fuel with an increasing blend ratio needs to be given,” it said, Indian Express reported.

The report also calls for four-wheelers, including passenger cars and taxis, to partially shift to electric and partially to ethanol-blended petrol with almost 50 per cent share in each category. '

"Diesel-driven 4-wheelers may be eliminated as soon as possible. Therefore, a ban on diesel-powered four-wheelers in all million-plus cities and all towns with high pollution has to be enforced in five years, i.e. by 2027,” the report said.

The report suggested CNG as a transitional fuel for the shift to EVs for up to 10-15 years.

It also sought short and medium-term promotion of flex-fuel vehicles and hybrids through the "application of fiscal tools like taxation".

The report also advises government to consider a “targeted extension” of incentives given under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles scheme (FAME) to beyond 31 March.

The report backed new registrations of only electric-powered city delivery vehicles from 2024 and recommended higher use of railways and gas-powered trucks for the movement of cargo.

According to the report, the demand for petrol and diesel in India will peak in 2040, and then decline due to the adoption of electric vehicles.

Similarly, LPG demand is expected to reduce from 2030 due to electric cooking and will completely disappear by 2070 upon 100 per cent electrification, it added.

Aviation fuel will keep growing at 3.5 per cent CAGR but will be gradually replaced by sustainable fuel.

"The rate of transition in fossil fuel consumption is primarily dependent on the shift in the auto sector to EVs. With an aggressive transition to EVs due to policy mandates, there will be accelerated repurposing/closure of refineries for renewable energy/biofuel production and reduction of overall carbon footprint,” the report said.