Motorists in New Delhi are set to protest India's flagship biofuel program, a policy championed by Prime Minister Narendra Modi to reduce crude oil imports and support farm incomes. Drivers are expressing anger over the accelerated shift to petrol with a higher percentage of ethanol, pointing to issues like reduced fuel efficiency, increased maintenance costs, and engine corrosion. The government and automotive manufacturers have been defensive amid weeks of social media complaints, with carmakers dismissing the claims as unfounded.
This backlash comes as Modi aims to expand his energy initiatives. India achieved its target of 20% ethanol blending in petrol five years early in 2025 and is considering further increases. State refiners also began selling 85% ethanol-blended petrol for flex-fuel vehicles last month. Automakers, including Maruti Suzuki India's executive director Rahul Bharti, assert that E20 fuel underwent extensive testing and is compatible with E10-certified vehicles, arguing that modest fuel economy declines are offset by broader economic and environmental benefits. Toyota Kirloskar Motor's Vikram Gulati attributed a widely shared case of vehicle damage to contaminated fuel rather than ethanol blending.
The biofuel debate is particularly sensitive for consumers as vehicle ownership costs continue to rise. Petrol prices are near four-year highs due to geopolitical disruptions, while insurance premiums, toll charges, poor road conditions, and monsoon damage further add to driver expenses. These factors make concerns about fuel efficiency and maintenance politically charged. Oil Minister Hardeep Singh Puri stated that any increase in ethanol blending beyond 20% would undergo rigorous testing and stakeholder consultations. He also rejected claims of misinformation, blaming "vested interests."
India's petrol demand has been growing significantly, with an average annual increase of 8.8% over the last five financial years, compared to 5.5% for diesel. The government's ethanol blending program aims to reduce reliance on crude imports, having saved over $1.9 lakh crore in foreign exchange and substituted 310 lakh metric tonnes of crude oil. However, public figures like Tehseen Poonawalla and Arvind Kejriwal have called for protests and written to the Prime Minister, demanding choices in fuel and criticizing the mandatory blending policy.
