The Modi government had claimed that ethanol-blended petrol would be cheaper than pure petrol. However, like other promises, this claim too proved to be nothing more than a hollow slogan (jumla) ; E-10 and subsequently E-20 fuels are being sold at the same price point as pure petrol, despite offering lower mileage and causing greater wear and tear on vehicles. Citizens and consumers in this country have no way to avoid this, other than purchasing 'XP100' petrol, which costs Rs 160 per litre.

The Society of Indian Automobile Manufacturers (SIAM) recently wrote to the Union Ministry of Petroleum expressing concern over the adverse effects of ethanol-blended fuel, highlighting the risks and negative consequences associated with blending ethanol into petrol. Although the letter was subsequently withdrawn under government pressure, this does not invalidate the logic behind the points raised in it.

One does not need expert knowledge to understand how the ethanol blending policy is blatantly fleecing consumers. Currently, the average price of adulterated petrol at government-run pumps is Rs 105 per litre. Now, factor in the 10% drop in mileage. If a two-wheeler covers 60 km on a litre of pure petrol, it will cover only 54 km on adulterated petrol ; thus, to cover 60 km, one would need to buy petrol worth Rs115. However, since the fuel contains 20% ethanol, the actual value of the petrol component is only Rs 97, yet it is being sold to us for Rs 115 after the ethanol blend. This simply means that, in addition to selling petrol at high prices through exorbitant taxation, the Modi government has found yet another way to generate extra revenue. If this isn't the fleecing of consumers, then what is? This calculation does not even include the repair costs for vehicle damage caused by adulterated petrol.

But the issue goes beyond this, as it also involves food security. In its defense, the Modi government argues that there is a need to reduce dependence on fossil fuels ; however, this cannot be achieved at the cost of food security, environmental concerns, and consumer grievances. Ethanol is primarily produced from maize and sugarcane. In a country where a large section of the population grapples with hunger and malnutrition, the use of food crops for fuel production cannot be justified. Maize is even being imported to boost domestic ethanol production. This drains the country's foreign exchange reserves — ironic, given that Modi had recently called for conserving foreign currency! The US exports GM (genetically modified) maize. Scientific research has established that this maize is unfit for human consumption. Yet, in hunger-stricken India, there is no stopping it from entering people's diets—consumption that could lead to genetic disorders. This maize could devastate our agriculture just as the PL-480 wheat did — the wheat imported from the US during the famine of the 1960s. We have yet to fully recover from the adverse effects of that inferior red wheat. Sugarcane cultivation requires vast amounts of water; such water-intensive farming is depleting our limited groundwater resources. All of this implies a detrimental shift in our crop cycle, which is harmful to both the people of this country and the agricultural sector.

So, who stands to gain from the sale of adulterated petrol? Undoubtedly, those involved in the production and trade of ethanol. Corporate houses and large sugar mills are the direct beneficiaries of the policy to sell adulterated petrol. A major player in this game is the son of Union Minister Nitin Gadkari. The US, from where ethanol is to be exported, is also exerting pressure in this arena. The US possesses a massive industry for converting food grains into biofuel, controlled by corporations. This significant provision is also included in the India-US Free Trade Agreement. It is evident that the Modi government prioritizes ensuring corporate profits over the interests of the general public.

According to information provided by the government in Parliament, the combined expenditure on ethanol production by three public sector oil companies and private firms rose from Rs 17,715 crore in 2020-21 to Rs 74,053 crore in 2024-25. During the same period, ethanol supply increased from 255.55 crore liters to over 1,040 crore liters. Before the Modi government took office, the ethanol blend in petrol was merely 1.53 percent; it has now risen to 20 percent. Everyone from refineries to local distributors and pump dealers is capitalizing on this indiscriminate government-mandated blending ; it has become easier for them to mix low-cost industrial solvents and chemicals (such as naphtha and toluene) into ethanol-blended petrol. This practice is rampant across the entire supply chain.

There is a need to launch a struggle against this policy of the Modi government, similar to the one recently waged by students and youth at Jantar Mantar. Consumers should have the right to choose the type of petrol they wish to purchase : pure petrol or blended petrol? Furthermore, the price of ethanol-blended fuel should be proportionately lower than that of pure petrol to compensate for reduced mileage and the costs of vehicle repairs resulting from wear and tear. Ethanol blending should not exceed 20 percent. Additionally, the import of American GM maize — which poses a threat to human life — must be banned.


The author is an independent writer on politics, social and agrarian issues. The views are personal.