Congress says E20 hurt middle class, favoured ethanol producers
Attacking the government over the rollout of E20 petrol, the Congress on Wednesday (August 5, 2026) alleged that it has deprived middle-class Indians of choice
Attacking the government over the rollout of E20 petrol, the Congress on Wednesday (August 5, 2026) alleged that it has deprived middle-class Indians of choice, saddled them with an inflated fuel bill, and damaged the vehicle they saved for years to purchase. Ethanol producers are the only class to have benefitted from E20, the Opposition party said. In a post on X, Congress general secretary Jairam Ramesh said regular petrol pumps have effectively supplied only E20 petrol since March 2025. Editorial | Insular incentive: On ethanol-blended fuel and the Indian consumer "The Modi Government's Transport Minister (Nitin Gadkari) had claimed that ethanol blending would bring diesel costs down to Rs.
50 per litre and provide a petrol alternative at Rs. 55 per litre. No such reduction has materialised," Mr. Ramesh said. Since March 2025, regular petrol pumps have effectively supplied only E20 petrol. The Modi Government's Transport Minister had claimed that ethanol blending would bring diesel costs down to Rs. 50 per litre and provide a petrol alternative at Rs. 55 per litre. No such reduction… — Jairam Ramesh (@Jairam_Ramesh) August 5, 2026 Instead, an independent analysis estimates 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 claimed.
Ramesh said citizens are effectively now paying more for E20 than they previously paid for regular petrol. The Modi government could have reduced the retail price of E20 to offset this loss in mileage, he argued. The NITI Aayog's ethanol roadmap recommended fiscal and tax incentives on E10 and E20 fuels to compensate consumers, he pointed out. Instead, the Modi government has approved more than ₹4,000 crore in subsidies for ethanol producers, further tilting the benefits of the E20 programme towards industry rather than consumers, Mr. Ramesh said. "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," the Congress leader alleged.
On Monday, the Congress said people are demanding accountability and transparency over the nationwide rollout of E20 petrol but the Modi government's ministers are unable to convince anyone of its harmlessness because no real data or reports exist. It said Union Transport Minister Nitin Gadkari's reply in Parliament on July 29 on the matter raised more questions than it answers.
The BriefWire