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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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