politics · 2026-08-05
Kejriwal Threatens Stir Over E20 Petrol

Photo: Nikhilb239 / Wikimedia (CC BY-SA 4.0)
Arvind Kejriwal led a 100-strong AAP march to submit 2.3 lakh petitions against E20 to PM Modi, blocked by police barricadesHe accused Modi of buying US ethanol under Trump's pressure, saying Indian farmers gain nothing from the shiftThe petition demands a pure-petrol option and lower E20 pricing to match its reduced mileage
Does E20 petrol really cut mileage and harm?
The evidence is mixed. Government cites ARAI/IIP studies showing only 1-2% efficiency loss in compatible cars, but real-world reports and even Gadkari have acknowledged mileage drops of 3-10%, sometimes over 10%, plus sluggish acceleration, especially in older, non-compatible vehicles.
Why does ethanol fuel reduce mileage at all?
Ethanol has lower energy density than petrol, so vehicles burn more fuel to cover the same distance. Government data says compatible four-wheelers lose only 1-2%, but independent estimates put real-world drops at 3-10%, varying by vehicle age and maintenance.
Does E20 actually damage engines long-term?
Ethanol absorbs moisture, which can corrode fuel systems and wear rubber seals, lines and injectors in older, non-compatible engines. Maruti Suzuki says it found no such damage across 2.84 crore cars serviced in FY 2025-26, including 1.5 crore pre-E20 vehicles.
Which vehicles are actually E20-safe?
Most petrol vehicles launched after April 2023 are built E20-compatible with upgraded materials. Cars manufactured before 2020, and those never certified for higher ethanol blends, face greater risk of compatibility issues and are where most mileage and wear complaints originate.
Is Trump pressuring India to buy US maize ethanol?
Kejriwal's claim is an allegation, not documented in government or policy sources. India's ethanol comes overwhelmingly from domestic sugarcane, maize and rice, produced at home to substitute imported crude, with government data crediting the programme with ₹1.90+ lakh crore in forex savings and ₹1.60+ lakh crore in extra farmer earnings since 2014-15.
What actually drives India's ethanol crop choice?
Government roadmap analysis found sugarcane most water-intensive but most lucrative for ethanol, while maize is the least water-intensive grain option. Policy has pushed exploring grains like maize alongside sugar to meet blending targets without straining irrigation, not to satisfy any foreign buyer.
Why does India push ethanol blending at all?
India imports close to 88.5% of the crude oil it consumes, exposing it to price swings outside its control. The Ethanol Blended Petrol Programme substitutes homegrown sugarcane, maize and rice fuel for imported crude, hitting 20% blending in 2025-26, five years ahead of schedule.
Is India's ethanol capacity keeping pace?
Installed ethanol production capacity is around 1,700 crore litres. If flex-fuel vehicles reach 20% of new registrations by 2028, demand could rise from about 1,016 crore litres in 2025 to roughly 1,600 crore litres, a jump CEEW says current capacity could still meet.
Why won't PM Modi meet Kejriwal over E20?
Modi's office did not give a reason for declining. Kejriwal said AAP had sought a meeting a month earlier and got no response, then was told on arrival that the PM would not meet the delegation, which he called a "dictatorial attitude" like the government's handling of the NEET protests.
Why is government committed to E20 policy?
India imports roughly 88.5% of the crude oil it consumes, exposing it to price and supply shocks. Ethanol blending has cut crude imports by over 310 lakh MT and saved more than Rs 1.90 lakh crore in forex since 2014-15, making it central to energy security policy.
Does the shift to E20 actually help farmers?
The government says ethanol blending has paid farmers roughly Rs 1.18 to 1.60 lakh crore in additional earnings since 2014-15 via crops like sugarcane, maize and rice. But CEEW notes production costs vary sharply by feedstock and public spending on ethanol extends well beyond procurement payments.
What's next after E20, and why it matters
MoRTH is now pushing E85/E100 flex-fuel vehicles, with about 48 retail outlets rolling out E85 since June 2026. Existing E20 vehicles cannot run E100 without engine changes, so scaling further requires new vehicles, new demand and ethanol capacity growing roughly 50% by 2028.
Source: thehindu.com