(July 6): India Prime Minister Narendra Modi’s flagship biofuels campaign is facing rare public opposition, with protesters taking to the streets on Sunday against an ethanol blend that the government hopes will cut crude imports but which motorists say means extra costs and engine damage.
The demonstration in New Delhi was the first significant street protest to date, with campaigners braving monsoon rains to demand a choice between basic gasoline and a government-promoted fuel blend that contains 20% ethanol, known as E20.
The energy upheaval caused by the Iran war has provided a boost for biofuels in multiple countries seeking to cut back dependence on costly purchases of crude from overseas to keep transport moving. Indonesia has just begun rolling out a pioneering 50% palm-diesel blend and Vietnam sped up its plans for mandatory use in a push for energy security.
Motorists, however, say Modi’s signature self-reliance shift also means worse fuel efficiency, higher maintenance bills and engine corrosion — all costs borne by the consumer.
“A car is the second-most expensive thing that the middle class buys,” political analyst Tehseen Poonawalla, who led the protests in Delhi, told reporters. “The government has imposed E20 fuel on the citizens who have vehicles compatible with E10 fuel, and they are now facing the consequences.”
The government has already been battling weeks of complaints on social media, and carmakers on Saturday sought to dismiss the concerns as unfounded. They said E20 underwent extensive testing before its nationwide rollout.
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“We haven’t seen any glaring issues on social media that warrants a rethink of the government’s biofuel blending programme," said Puneet Anand, associate vice president at Hyundai Motor India.
Vehicles designed for E20 have been on sale since 2025 and the fuel is also compatible with older E10-certified vehicles, according to Rahul Bharti, executive director at Maruti Suzuki India. Although fuel economy may decline modestly, the trade-off is offset by the fuel’s broader economic and environmental benefits, he said.
Manufacturers also pushed back against specific claims circulating online. Vikram Gulati, country head at Toyota Kirloskar Motor, said a widely shared case involving a Toyota Innova Hycross allegedly damaged by E20 was traced to contaminated fuel rather than ethanol blending.
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Speaking separately in Rajasthan, Oil Minister Hardeep Singh Puri said concerns stemmed from misinformation.
Biofuels have been a signature policy for Modi. India met its target of blending 20% ethanol into gasoline five years ahead of schedule in 2025 and is evaluating a further increase in the mandate. Last month, state refiners also began selling gasoline blended with 85% ethanol for flex-fuel vehicles.
Apart from cutting a gargantuan oil-import bill, the push is intended to boost farm incomes.
For consumers, however, the debate fits into wider concerns about living costs. Gasoline prices remain near four-year highs following geopolitical disruptions, while insurance premiums, toll charges, poor road conditions and monsoon-related damage have added to motorists’ expenses, making concerns over fuel efficiency and maintenance more politically sensitive.
India’s gasoline demand has been expanding faster than diesel consumption, rising an average 8.8% annually over the past five financial years compared with 5.5% for diesel, according to government data. Gasoline accounts for about 18% of refined fuel sales, making the success of the ethanol programme increasingly important to the government’s energy strategy.
Oil Minister Puri said Saturday that any move to raise ethanol blending further to 25% from 20% — a key concern for protestors — would be undertaken only after rigorous testing and consultations with stakeholders. He added that India’s strategy to diversify transport fuels would rely on multiple technologies, including biofuels, batteries and compressed natural gas.
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