Congress seeks review of E20 policy, non-ethanol petrol options
Jairam Ramesh says consumers are paying the price through higher food and transport costs
On August 21, 2026, the Congress demanded an immediate review of the Centre’s E20 policy and requested non-ethanol petrol options, claiming that consumers were being burdened with higher food and transport costs. The party's communications chief, Jairam Ramesh, argued that using sugarcane and foodgrains for ethanol production was driving up food prices, while vehicles not designed for 20% ethanol blending faced issues with reduced mileage and compatibility concerns.
The Congress cited a report stating that 2.5 million tonnes of sugarcane intended for sugar production were redirected to ethanol, causing sugar prices to surge from ₹48 to ₹67 per kg and jaggery prices from ₹50 to ₹65 per kg within the past three months. Ramesh also pointed out that despite a drop in international crude oil prices, petrol prices had remained unchanged, and questioned the lack of alternatives to petrol, which were allegedly benefiting ethanol producers.
Opposition leader Rahul Gandhi had previously highlighted allegations of corruption in the E20 policy implementation, with the Congress Working Committee expressing concerns over reduced mileage, compatibility risks, limited consumer choice, and environmental damage. The government’s Chief Economic Advisor, V. Anantha Nageswaran, had suggested offering E10 petrol for older vehicles and addressing the trade-off between food and fuel.
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