Congress Demands Immediate Review of E20 Fuel Policy, Citing Rising Food and Vehicle Costs

The Indian National Congress has demanded an immediate review of the government’s E20 fuel policy, criticizing the blending mandate as an anti-people measure that increases household expenses and damages vehicle operations. Congress general secretary in-charge of communications Jairam Ramesh shared figures on social media highlighting steep price increases across essential commodities over a three-month period.

According to the data cited by the party, sugar prices rose from ₹48 to ₹67 per kg, representing a 40 per cent increase, while jaggery prices increased from ₹50 to ₹65 per kg, a 24 per cent rise. Additionally, the party noted that rice prices climbed by 16 per cent, maize flour by 11 per cent, and animal feed costs increased by 10.34 per cent.

The opposition party attributed these inflationary pressures to the diversion of 25 lakh tonnes of sugar-grade sugarcane and grain toward the production of ethanol for a 20 per cent petrol blend. Ramesh stated that this diversion has created shortages in the supply of these commodities, directly impacting kitchen budgets.

Beyond food inflation, the Congress party raised concerns regarding the mechanical impact of the E20 fuel mix on vehicles. The party asserted that vehicles not specifically designed to handle a 20 per cent ethanol blend risk physical damage and experience reduced mileage. Ramesh noted that vehicle owners are bearing the brunt of these compatibility issues while fuel choices are restricted, and pointed out that petrol prices have not decreased despite international crude oil price drops and savings from ethanol blending.

The issue was also addressed in a resolution passed during a Congress Working Committee meeting. The resolution highlighted that issues related to fuel contamination, environmental costs, lower mileage, and the loss of consumer choice remain unresolved and require urgent attention. The opposition party has maintained that the policy primarily benefits ethanol producers while saddling middle-class citizens with higher living and transportation expenses.

"The debate surrounding the E20 fuel policy highlights the complex economic trade-offs inherent in blending mandates. While green energy initiatives are vital for long-term sustainability, policy rollouts must carefully balance raw material allocation to prevent supply chain distortions in essential commodities like sugar and grain. For businesses and consumers alike, sudden inflationary pressures on food and transportation underscore the need for transparent, well-tested implementation frameworks that protect domestic household economics while advancing national environmental goals." — Dr. Shishir Gupta, Founder & CEO, StartupLanes