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    EYE ON INDIA                                                          AUGUST 07, 2026      |  The Indian Eye                    6

                Petrol Politics: How India’s Green Fuel

                          Push Has Sparked a Major Row

                As the Narendra Modi government projects ethanol blending as a pillar of India’s energy
                 security strategy, the Opposition has turned the policy into a political flashpoint, raising

                    questions over fuel prices, vehicle performance, consumer choice and food security.

            OUR BUREAU                                                                                            operated using E15-plus and E20
                                                                                                                  fuels. The ministry also cites service
            Manila / New Delhi
                                                                                                                  data from a major automobile man-
               ndia’s ambitious ethanol blending                                                                  ufacturer involving 2.84 crore vehi-
               programme, once viewed largely                                                                     cles—including approximately 1.5
            Ias a technical energy policy, has                                                                    crore older vehicles not originally
            suddenly become one of the coun-                                                                      certified  for  E20—which  reportedly
            try’s most contentious political is-                                                                  found no ethanol-related corrosion
            sues. The immediate trigger has been                                                                  or abnormal wear.
            a campaign launched by the Aam                                                                            Another important dimension
            Aadmi Party (AAP) and its nation-                                                                     involves agriculture.
            al convenor Arvind Kejriwal against                                                                       The government presents etha-
            the Centre’s E20 (20 per cent etha-                                                                   nol blending as a major rural devel-
            nol-blended petrol) policy, accusing                                                                  opment initiative. Surplus sugarcane,
            the  government  of imposing  a  fuel                                                                 broken  rice  and  excess  food  grains
            that allegedly damages vehicles while                                                                 are diverted towards ethanol pro-
            offering  consumers no economic                                                                       duction, creating stable demand for
            benefit.                                                                                              agricultural produce while providing
                The Bharatiya Janata Party                                                                        farmers with an additional income
            (BJP)-led government, however, has                                                                    stream.
            responded aggressively, presenting   Comedian Shyam Rangeela addresses the public gathering during the National Town Hall   Supporters from Punjab’s rice
            ethanol blending as a strategic ne-                                                                   milling industry argue the pro-
            cessity that shields India from vola-  Against E-20, in New Delhi on Saturday. Aam Aadmi Party National Convenor Arvind Kejriwal   gramme has reduced pressure on
            tile  global  oil  markets,  reduces  de-          was also present (ANI Photo/Naveen Sharma)         millers while strengthening farm in-
            pendence on imported crude, cuts                                                                      comes by creating an assured market
            emissions and creates a massive new   lakh metric tonnes of crude imports   tively pay more per kilometre despite   for surplus paddy.
            market for Indian farmers.        and reduced carbon emissions sig-  paying the same price at the pump.   This concern mirrors debates
                The  debate has now expanded   nificantly. It also says the programme   Kejriwal has further questioned   witnessed earlier in countries such as
            beyond fuel chemistry into econom-  has channelled over `1.66 lakh crore   whether  adequate  scientific  studies   Brazil and the United States, where
            ics, agriculture, consumer rights and   directly to farmers and distillers,   exist and accused the government of   biofuel expansion periodically trig-
            electoral politics.               helping rural incomes while reducing   forcing the policy on motorists.   gered discussions over agricultural
                The Centre’s strongest argument   India’s heavy dependence on import-  By focusing on household ex-  land use and food prices.
            revolves around energy security.  ed crude oil.                     penses rather  than technical  fuel   The timing of the controversy is
                According to the Ministry of Pe-  The AAP has chosen a very dif-  specifications,  the  Opposition  is  at-  unlikely to be accidental.
            troleum and Natural Gas, ethanol   ferent political framing.        tempting to transform a specialized   With elections approaching in
            blending protected Indian consumers   Rather than challenging etha-  policy issue into a pocketbook con-  several states and fuel prices remain-
            during periods of exceptionally high   nol’s environmental credentials, Ke-  cern.                    ing politically sensitive, the Opposi-
            global crude prices. The ministry ar-  jriwal has focused on consumer con-  AAP leaders claim ethanol   tion has found an issue capable of
            gues that if petrol had contained no   cerns. He argues that motorists are   blending reduces fuel efficiency and   connecting environmental policy
            ethanol when crude prices surged to   paying more without receiving any   damages engines, especially older   with consumer economics. By de-
            around USD 135  per barrel, petrol   tangible benefit.              vehicles. They argue consumers de-  manding “choice”  rather than out-
            prices in Delhi could have touched    The party has demanded three   serve the freedom to choose fuels   right abolition of ethanol blending,
            nearly  `125 per litre. Instead, con-  immediate  changes:  consumers  suited to their vehicles. The Petro-  AAP is positioning itself as defend-
            sumers paid `94.77 per litre because   should be allowed to choose between   leum Ministry has categorically re-  ing motorists against what it portrays
            one-fifth  of  every  litre  consisted  of   pure petrol and E20 fuel at petrol   jected these allegations.  as bureaucratic overreach.
            domestically produced ethanol pur-  pumps; E20 should be priced lower   According to the ministry, there   Ultimately, the ethanol con-
            chased at stable prices.          than regular petrol; and overall pet-  is “no verified evidence” linking E20   troversy  reflects  a  broader  reality
                The government describes eth-  rol prices should fall below `84 per   fuel to widespread engine damage   of policymaking in India. Measures
            anol not as a subsidy but as “India’s   litre.                      after more than 25 years of phased   that may appear economically ra-
            energy insurance,” claiming that the   The political messaging is   implementation  and  scientific  eval-  tional or strategically beneficial can
            programme has generated foreign   straightforward.                  uation. It notes that over 20 crore   still become politically contentious if
            exchange savings exceeding  `1.97     If ethanol reduces mileage—as   two-wheelers and more than three   consumers perceive immediate costs
            lakh crore, substituted more than 316   critics allege—then consumers effec-  crore petrol cars  have  successfully   without equally visible benefits.

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