Transport Minister Nitin Gadkari: Paid Media Campaign, Petroleum Lobby Behind E20 Petrol Criticism

Union Road Transport and Highways Minister Nitin Gadkari has dismissed widespread criticism of the E20 fuel blend as propaganda driven by petroleum interests. Speaking at the Federation of Automobile Dealers Associations’ Auto Retail Conclave, he argued that opposition to ethanol blending comes from a “rich and strong” lobby intent on protecting its profits.

What is E20 Petrol?

E20 is a petrol blend containing 20 percent ethanol and 80 percent fossil fuel. It became available nationwide in April 2025 after an earlier pilot phase. The policy is part of the government’s long-term plan to cut fossil fuel imports, improve energy security, and support domestic agriculture by using sugarcane, rice, and other crops for ethanol production.

India spends close to Rs 22 lakh crore each year on oil imports, and Gadkari has repeatedly linked ethanol blending with reducing this dependence. He also highlights the added benefit of giving farmers a reliable market for their produce, which could strengthen rural incomes while cutting carbon emissions.

Concerns Over Mileage and Engine Safety

Despite these goals, E20 has drawn criticism from consumers and automotive experts. Vehicle owners have expressed concerns about reduced mileage, possible engine wear, and higher maintenance costs, especially for older models not designed for higher ethanol content. Social media has amplified these complaints, often framing E20 as an expensive experiment at the cost of consumers.

Government agencies acknowledge some loss of efficiency, usually in the range of 2 to 5 percent, due to ethanol’s lower energy content compared to petrol. Industry experts generally agree this is a manageable trade-off, but for cost-sensitive buyers, even a small drop in mileage can become a sticking point.

The Ministry of Petroleum and Natural Gas has defended the policy, saying concerns are exaggerated and that abandoning ethanol blending would undo progress made in emissions reduction and energy diversification.

The Role of Lobbying

Gadkari’s comments brought the issue into sharper political focus. He claimed that petroleum companies, with large investments in refining and fuel distribution, are leading campaigns against ethanol adoption to safeguard their existing business. According to him, the scale and wealth of this lobby explain why concerns about E20 have gained such prominence in public debate.

Energy transitions often create resistance from established industries, and petroleum is no exception. Critics argue that while lobbying is part of the picture, consumer concerns should not be dismissed outright. Vehicles not built with flex-fuel capability may genuinely face performance issues if used extensively with ethanol blends, and clarity on warranty and support from manufacturers is essential.

Legal and Policy Backing

The government has stood firm on its position. The Supreme Court recently dismissed a petition challenging E20’s rollout, which effectively confirmed the policy direction. The phased introduction - beginning at select fuel stations in 2023 before going nationwide in 2025 - was meant to give refiners, automakers, and consumers time to adjust.

In parallel, the government is encouraging automakers to develop flex-fuel engines capable of running on varying ethanol blends. Gadkari has also pointed to opportunities in agricultural equipment, where such engines could both support farmers and expand domestic ethanol use.

Balancing Gains and Challenges

The E20 controversy highlights the complexity of shifting from conventional fuels to alternatives. On one hand, ethanol blending supports energy security, reduces oil import costs, cuts emissions, and benefits agriculture. On the other, there are practical concerns for vehicle owners about efficiency, long-term reliability, and availability of service support.

The truth likely lies somewhere in between the extremes of propaganda and dismissal. The petroleum lobby may be working to slow adoption, but some consumer worries are grounded in real-world experiences. For India, the challenge will be to refine E20 implementation while building confidence among drivers that the trade-offs are limited and manageable.