The Congress on Friday demanded an immediate review of the Centre’s E20 petrol policy, alleging that the ethanol-blending programme was contributing to higher food prices while raising concerns over vehicle mileage and compatibility.
Congress communications chief Jairam Ramesh alleged that the diversion of sugarcane and foodgrains for ethanol production had contributed to rising prices of essential commodities.
Citing a media report, Ramesh said sugar prices had increased from ₹48 to ₹67 per kg and jaggery prices from ₹50 to ₹65 per kg over the past three months. He also claimed rice and maize flour prices had risen by 16% and 11%, respectively, while animal feed costs increased by 10.34%.
Ramesh said 25 lakh tonnes of sugarcane meant for sugar production had been diverted towards ethanol, arguing that such diversion could put pressure on food supplies.
He also raised concerns over the impact of E20 petrol—fuel containing up to 20% ethanol—on vehicles not designed for higher ethanol blends, particularly in terms of mileage and compatibility.
“The people are paying the price for both expensive food and expensive travel,” Ramesh said, accusing the Modi government of pursuing a “wrong” and “anti-people” fuel policy.
He questioned why petrol prices had not fallen despite lower international crude oil prices and the savings associated with ethanol blending.
Ramesh also alleged that the policy had restricted consumer choice while benefiting ethanol producers. He said Congress leader Rahul Gandhi had repeatedly raised concerns over alleged irregularities in the implementation of the E20 programme.
The Congress Working Committee, which met on August 19, also flagged concerns over reduced mileage, vehicle compatibility, limited consumer choice and environmental costs associated with diverting sugarcane and maize for ethanol production.
The party demanded an immediate review of the E20 policy and called for non-ethanol petrol options to remain available to consumers.
