Congress calls for E20 policy review, demands non-ethanol fuel choices
The Congress party on Friday demanded an immediate review of the central government's E20 ethanol blending policy, urging that consumers be provided with non-ethanol petrol options. Party communications chief Jairam Ramesh alleged that the policy has contributed to rising food prices and vehicle compatibility problems.
In a post on X, Ramesh claimed that the diversion of sugarcane and foodgrains for ethanol production has driven up food costs. He also said vehicles not designed for 20% ethanol blending face lower mileage and compatibility issues.
"The people are paying the price for both expensive food and expensive travel because of the wrong decisions of the arrogant Modi government," Ramesh said, adding that a fuel policy that increases costs for both vehicles and kitchens cannot be acceptable to the nation.
Ramesh cited a news report stating that 2.5 million tonnes of sugarcane meant for sugar production had been diverted to ethanol. He said sugar prices rose from ₹48 to ₹67 per kg and jaggery from ₹50 to ₹65 per kg over the past three months. Rice and maize flour became costlier by 16% and 11%, respectively, while animal feed prices rose 10.34%.
The Congress leader also questioned the absence of a reduction in petrol prices despite a decline in international crude oil prices and the purported cost benefits of 20% ethanol blending. He alleged that alternatives to petrol have been restricted to benefit ethanol producers, while concerns about the impact of E20 on vehicle mileage and compatibility remain unresolved.
Ramesh noted that Leader of the Opposition in the Lok Sabha Rahul Gandhi has consistently raised the issue of alleged corruption in the implementation of the E20 policy. He said the Congress Working Committee on August 19 had expressed concerns over lower mileage, vehicle compatibility risks, limited consumer choice, and environmental damage linked to the policy.
The E20 policy, which mandates 20% ethanol blending in petrol by 2025-26, is part of the government's push to reduce oil imports and promote cleaner fuels. However, critics have argued that the diversion of agricultural produce to ethanol production can distort food markets.
The government has yet to respond to the Congress party's latest statements on the issue.
