Congress alleges E20 petrol rollout hurt middle class, benefited ethanol producers

The Congress on Wednesday attacked the central government over the nationwide rollout of E20 petrol, alleging that the policy has hurt middle-class consumers while benefiting ethanol producers. In a post on X, Congress general secretary Jairam Ramesh accused the government of depriving ordinary citizens of choice, inflating their fuel bills, and damaging vehicles they had saved up for years to purchase.

Mr. Ramesh said that since March 2025, regular petrol pumps have effectively supplied only E20 petrol. He recalled that Union Transport Minister Nitin Gadkari had earlier claimed that ethanol blending would bring diesel prices down to Rs 50 per litre and provide a petrol alternative at Rs 55 per litre. "No such reduction has materialised," the Congress leader said.

Citing an independent analysis, Mr. Ramesh alleged that between April 2023 and March 2026, consumers collectively spent nearly ₹88,234 crore extra just to offset the reduced mileage of ethanol-blended fuel. He argued that this effectively means citizens are paying more for E20 than they previously paid for regular petrol. He also stated that the government could have reduced the retail price of E20 to compensate for the mileage loss.

The Congress leader further pointed out that the NITI Aayog's ethanol roadmap had recommended fiscal and tax incentives on E10 and E20 fuels to compensate consumers. Instead, the government has approved over ₹4,000 crore in subsidies for ethanol producers, tilting the benefits of the E20 programme towards industry, he alleged.

"E20 has deprived ordinary middle class Indians of choice, saddled them with an inflated fuel bill, and damaged the vehicle that they saved for years to purchase," Mr. Ramesh said.

This is not the first time the Congress has raised the issue. On Monday, the party accused the government of failing to provide data or reports to convince the public about the harmlessness of E20 petrol. It also said that Mr. Gadkari's reply in Parliament on July 29 had raised more questions than answers.

E20 is a blend of 20% ethanol with petrol. India has been progressively increasing ethanol blending as part of its strategy to cut crude oil imports, reduce vehicular emissions, and support the agricultural sector. The central government has maintained that the transition to E20 is a carefully planned step towards greater energy self-sufficiency and has pointed to the successful achievement of blending targets.

However, the policy has drawn criticism from various quarters. Consumer groups and auto experts have noted that ethanol has a lower energy content than petrol, which can result in reduced fuel efficiency. They have also raised concerns about the long-term impact on engine components, especially in older vehicles that are not E20-compatible. The government, for its part, has said that all new vehicles are being manufactured to be E20-compliant and that the auto industry has been adequately prepared for the transition.

Political observers see the Congress's aggressive stance on the issue as part of its broader campaign against the government's economic policies. The party has consistently argued that the government's decisions favour corporate interests over the common citizen, and the E20 rollout fits into that narrative.

The government has not yet issued a detailed rejoinder to the latest allegations. In the past, Mr. Gadkari has defended ethanol blending as necessary for the country's energy security and for farmers' welfare. He has also emphasised that blending helps reduce the country's dependence on imported crude oil, which is a major drain on foreign exchange.

The analysis cited by Mr. Ramesh was not immediately available, and its methodology could not be independently verified by this news organisation.