Nitin Gadkari On E20 Petrol Backlash: Blames ‘Rich Petrol Lobby’ For Opposition

Union Minister for Road Transport and Highways Nitin Gadkari on Wednesday accused the petroleum sector of attempting to block India's transition to ethanol-blended fuel, alleging that a powerful "petrol lobby" was working against the government's efforts.

"Everywhere there are lobbies, there are interests... petrol lobby is very rich," Gadkari said while addressing the 65th annual convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi. His remarks were in response to the growing criticism of E20 fuel-petrol blended with 20 per cent ethanol-that has sparked debate on social media.

The rollout of E20, which was first introduced at select fuel stations in April 2023, was expanded nationwide in April 2025. It replaced E10, the earlier standard blend containing 10 per cent ethanol, that most vehicles in India were using. Ethanol is an alcohol largely produced from sugarcane and food grains such as rice and maize.

Fuel efficiency concerns

The transition to E20 has fueled debate among motorists and experts, with concerns that higher ethanol blending could affect vehicle performance and durability. Automobile experts told PTI that cars running on E20 may experience a 2-5 per cent reduction in mileage due to ethanol's lower calorific value compared with petrol. They also warned that older, non-E20-compliant vehicles could suffer long-term damage to rubber hoses, gaskets, and fuel pipes.

The oil ministry, however, has dismissed these claims as overstated. In an August 4 post on X, it clarified that the efficiency loss is marginal, with E10 vehicles calibrated for E20 expected to see only a 1-2 per cent drop in mileage, while others could face a 3-6 per cent decline. The ministry further pointed out that many automakers have been manufacturing E20-compatible models since 2009.

Reducing imports and supporting farmers

Defending the ethanol programme, Gadkari emphasized its role in cutting down India's heavy dependence on imported crude oil, which accounts for 88 per cent of national demand. "We have an import of ₹22 lakh crore. Is it not appropriate that we have to make in India with our own strength? We can stand on our own strength. So we are working on that," he said at the 7th Auto Retail Conclave of the Federation of Automobile Dealers Associations (FADA).

The minister added that the initiative was not only aimed at saving foreign exchange and reducing emissions but also at raising farmers' incomes by creating greater demand for sugarcane and grain-based ethanol.

Exploring alternative fuels

Gadkari also highlighted the importance of broadening India's alternative fuel strategy. "We want to concentrate on alternative fuel, biofuel, hydrogen, electric - whatever the choice may be, even in the marine engine. Now we are planning to use methanol," he said, noting that experiments with ethanol and isobutanol were also underway.

As the world's third-largest oil consumer, India remains vulnerable to global price fluctuations. Gadkari reiterated that diversifying into ethanol, methanol, hydrogen, biofuels, and electric energy is essential for achieving energy security and economic independence.