The opposition Congress has charged the Modi government with making the rollout of E20 petrol a financial burden for middle‑class families. The party argues that the policy has raised fuel bills, reduced vehicle mileage and favoured ethanol producers over consumers.
Key Developments
- Since March 2025, most regular pumps have been dispensing only E20 petrol, effectively ending pure‑petrol sales.
- The government exempted central excise duty on blends containing 22‑30% ethanol, benefitting ethanol manufacturers.
- Congress leader Jairam Ramesh cited an independent analysis showing consumers spent an extra ₹88,234 crore from April 2023 to March 2026 to offset lower mileage.
- The NITI Aayog roadmap had recommended fiscal incentives for ethanol blending to protect consumers, a step the government has not fully implemented.
- More than ₹4,000 crore in subsidies have been approved for ethanol producers, widening the gap between industry gains and consumer costs.
- Transport Minister Nitin Gadkari previously claimed the blend would lower diesel to ₹50/litre and petrol to ₹55/litre, promises that have not materialised.
Important Facts
The policy aims to reduce oil imports and promote renewable energy, but the lack of price adjustments means consumers pay more per kilometre. While ethanol producers enjoy tax exemptions and subsidies, the anticipated price benefits for fuel have not been passed on. No comprehensive data on mileage loss or consumer impact has been released by the government, prompting calls for transparency.
Exam Relevance
- Understanding the interplay between