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Demonstrators hold signs protesting the government's mandatory 20% ethanol-blended fuel (E20) policy in New Delhi, India, on July 5. / Courtesy of Reuters via Yonhap News

Backlash intensifies in India over mandatory ethanol-blended fuel use

Consumer backlash against India’s mandatory 20% ethanol-blended gasoline (E20) policy is flaring up once again, rapidly escalating into a highly charged political battleground.

According to a report by Reuters on July 9, the Narendra Modi administration recently mandated that all 90,000 gas stations nationwide shift completely from E10 to E20 fuel by late last year. This aggressive rollout accelerated the country's original nationwide E20 target by five years, moving it up from 2030.

However, E20-compatible vehicles only began entering the Indian market in 2023. This timeline immediately triggered intense scrutiny over fuel compatibility issues with older vehicles manufactured prior to that year.

The controversy, which had temporarily cooled down, reignited following a verbal slip by a government attorney during a recent court proceeding. The lawyer referred to the E20 policy as an "experiment" before quickly retracting the statement. Nevertheless, the comment was enough to instantly revive consumer anxieties regarding the safety and long-term impact of E20 fuel.

On social media platform X (formerly Twitter), hundreds of car owners have been complaining about drops in fuel efficiency and accelerated component wear. One user demanded, "Automakers need to explicitly state whether pre-2023 models can actually handle E20 fuel without suffering damage."

As consumer discontent mounts, opposition politicians are seizing on the issue to pressure the government. Arvind Kejriwal, the former Chief Minister of Delhi and a prominent opposition leader, held a press conference on July 7 where he read directly from Maruti Suzuki and Toyota owners' manuals to argue that a vast majority of older models are strictly rated up to E10. "Consumers are asking for only one thing: the right to choose," Kejriwal said, adding that he had sent formal inquiries to major automakers, including Toyota, demanding clear answers on E20 compatibility.

Reuters highlighted that the fuel cap and owner's manual of a 2024 Audi Q3 sold in India recommended only E5 or E10 fuel, while a Mahindra Scorpio SUV from the same model year featured a warning sticker reading "Use Petrol/E10 Fuel Only." While Mahindra issued a statement clarifying that its E20-compliant models can safely use the new fuel, it avoided addressing the issue of legacy vehicles. Maruti Suzuki and Toyota did not immediately respond to requests for comment.

The Modi administration is moving swiftly to contain the damage. The government continues to emphasize that E20 lowers crude oil import bills, boosts incomes for local sugarcane farmers who supply the ethanol feedstocks, and cuts vehicular emissions. Transport Minister Nitin Gadkari struck a defiant tone, challenging critics by stating, "If anyone can definitively prove that E20 fuel has caused damage to their vehicle, I invite them to step forward."

Despite the government's reassurances, the controversy shows no signs of abating. A lawyer recently filed a new public interest litigation (PIL) with the Supreme Court of India challenging the E20 mandate. However, because the top court dismissed a similar petition last year, it remains uncertain whether this new case will be admitted for a hearing.

Industry experts note that the root cause of the friction stems from the sheer speed of India's energy transition. They point out that Brazil took decades to gradually ramp up its ethanol blending ratios, while the United States maintains E10 as its standard baseline and offers higher blends purely as an option for certified flexible-fuel vehicles.

                                                                                                               Jung Ri-na