Congress says E20 hurt middle class, favoured ethanol producers

The Congress criticized the government's implementation of E20 petrol, alleging that it has burdened middle-class Indians with higher fuel costs and limited their vehicle choices. The opposition party pointed out that ethanol producers are the sole beneficiaries of the E20 program. In a post on X, Congress general secretary Jairam Ramesh reported that regular petrol pumps have exclusively supplied E20 since March 2025.

Ramesh argued that the government failed to deliver on promises made by Transport Minister Nitin Gadkari, who claimed ethanol blending would lower diesel costs to Rs. 50 per liter and provide a cheaper petrol alternative at Rs. 55 per liter. No such reductions have been realized. An independent analysis indicated that between April 2023 and March 2026, consumers collectively spent approximately ₹88,234 crore extra to compensate for the reduced mileage provided by ethanol-blended fuel, Ramesh claimed.

He also noted that the government could have lowered the retail price of E20 to offset this loss in mileage. The NITI Aayog's ethanol roadmap recommended fiscal and tax incentives for E10 and E20 fuels to compensate consumers, but the government instead approved over ₹4,000 crore in subsidies for ethanol producers. Ramesh argued that this shift in subsidies favors the industry at the expense of consumers.

The Congress leader claimed that the nationwide rollout of E20 petrol has deprived ordinary middle-class Indians of choice, led to inflated fuel bills, and damaged vehicles they had saved for years to purchase. The party criticized the government's inability to address these concerns due to a lack of data or reports.