Congress says E20 hurt middle class, favoured ethanol producers
The Congress party has criticized the Indian government's E20 ethanol-blended fuel policy, claiming it has increased costs for consumers while failing to deliver promised fuel price reductions. The party alleges that the policy primarily benefits ethanol producers through subsidies at the expense of the middle class.
Why it matters
It highlights a significant political and economic debate regarding energy policy, consumer costs, and corporate subsidies in India.
Attacking the government over the rollout of E20 petrol, the Congress on Wednesday (August 5, 2026) alleged that it has deprived middle-class Indians of choice, saddled them with an inflated fuel bill, and damaged the vehicle they saved for years to purchase.
Ethanol producers are the only class to have benefitted from E20, the Opposition party said.
In a post on X, Congress general secretary Jairam Ramesh said regular petrol pumps have effectively supplied only E20 petrol since March 2025.
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"The Modi Government's Transport Minister (Nitin Gadkari) had claimed that ethanol blending would bring diesel costs down to Rs. 50 per litre and provide a petrol alternative at Rs. 55 per litre. No such reduction has materialised," Mr. Ramesh said.
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