Petrol Lobby Trying to Stall Ethanol Push, Says Nitin Gadkari

Union Minister for Road Transport and Highways Nitin Gadkari on Wednesday accused the petroleum sector of lobbying against the government’s ethanol-blended fuel programme, saying vested interests were attempting to derail the transition.

“Everywhere there are lobbies, there are interests… petrol lobby is very rich,” Gadkari said at the 65th annual convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi, while responding to concerns over E20 — petrol blended with 20% ethanol.

E20 rollout and mileage debate
India began rolling out E20 at select outlets in April 2023, expanding it nationwide in April 2025, replacing the earlier E10 blend. Ethanol is derived mainly from sugarcane and grains such as maize and rice.

Consumers and experts have raised concerns that ethanol could lower vehicle efficiency and cause wear in older cars. Analysts estimate a 2–5% drop in mileage on E20, but the petroleum ministry has called such claims “exaggerated,” pegging the impact at 1–2% for compatible vehicles.

Cutting imports, aiding farmers
Defending the programme, Gadkari said ethanol blending was vital to cut India’s crude import bill — which stands at ₹22 lakh crore — and to boost farm incomes. “We can stand on our own strength. This programme is not just for saving foreign exchange but also to support our farmers,” he said at a separate event, the Auto Retail Conclave of the Federation of Automobile Dealers Associations (FADA).

Beyond ethanol
Gadkari added that India must diversify its fuel basket further. “We want to concentrate on alternative fuel, biofuel, hydrogen, electric… even for marine engines. Now we are planning to use methanol,” he said, noting that trials with ethanol and isobutanol are also underway.

India, the world’s third-largest oil consumer, remains highly vulnerable to global price swings. Gadkari said the transition to alternative fuels was key to energy security and economic independence.