As we all know, due to the Russia-ukraine and ukraine-israel war, the oil prices have significantly shot up. This led to inflation in oil prices in india. In 2022, due to the Ukraine crisis, the crude oil prices shot up by a staggering 7.8% and to control this inflation, RBI decided to increase the interest rate. When the rbi increases the interest rate, the banks increase the interest rate as well, which means that the lending rates have increased. Due to this, businesses spend less money, reducing the overall demand. This lower demand puts a downward pressure on the prices, reducing inflation. These higher interest rates also increase foreign investment directly increasing the value of rupee, making imports cheaper which helps in reducing inflation. When millions of families in India pay more on emi, their overall consumption rate for goods and services goes low. However, India has found it’s own source of oil, which is not in the ground, but in the sugar. India, by far, dominates the sugar market, and this oil will be made with the same commodities that were going to waste. This started first when saudi arabia and its allies had cut their oil supplies in retaliation to the western support of israel in 1973 and this choked the india, us and russian economies and brazil completely choked during this time, because 100% of the oil they used, was imported resulting in the fact that brazil couldn't afford the oil anymore as it shot up by 400%. Since America and Europe were also choking, they stopped importing sugar from Brazil, which left a lot of sugarcane supplies in brazil. To everyone's surprise, Brazil used these sugarcanes to produce oil. The process is that when sugarcane is processed to make the juice, the juice is boiled and crystalised after each round of sugar extraction which leaves a dark fluid, which leaves the first byproduct, molasses a, when the process is repeated, molasses b is created and then c. rather than letting all this molasses go to waste, brazil discovered that fermenting it and then distillation could convert it into ethanol, a greener solution to petrol. Here is a direct comparison between oil and ethanol. Oil has higher efficiency, while ethanol has lower as it produces 30% less energy per gallon of gasoline. The production cost of ethanol stands higher than oil. However ethanol has lower carbon emissions when burned than oil and it is also renewable, while oil is nonrenewable. Ethanol however can be cohesive to certain engines, whereas oil has good compatibility with all engines. Oil is also globally available whereas the availability for ethanol is growing, however limited in some areas. The production of ethanol also requires more land, water and equipment whereas for oil, it can be done solely through extraction. Oil is the major driver of the global economy, whereas ethanol supports local economies and agriculture which is much needed. Looking at this tough comparison, it is evident that shifting completely to 1 alternative may either make environmental sense, but no financial and production sense or visa-versa. Thus, a more doable solution, is to mix a certain quantity of ethanol with oil, which can get us the benefit of both, less environmental impact comparatively, and also cost effective making financial and production sense. As we begin to do this, we may end up finding ways to completely substitute oil with ethanol, making India independent in the oil sector, saving billions of dollars.