Gadkari said ethanol forms only a small part of the diversified business run by his son and maintained that his advocacy of alternative fuels predates the expansion of those commercial activities. He said his policy position was guided by the need to reduce pollution, curb dependence on imported crude oil and create additional income opportunities for farmers.
The minister also said motorists seeking petrol without ethanol would have to pay more because supplying a separate fuel would involve additional production, storage and distribution costs. His remarks indicated that the government does not plan to restore cheaper, widely available ethanol-free petrol alongside the nationwide E20 programme.
Petrol containing 20 per cent ethanol has become the standard transport fuel across the country after the government advanced its blending target by five years. All petrol supplied from April 2026 is required to meet the E20 specification, while new Bharat Stage-VI vehicles must comply fully with emissions and performance standards for the blend.
The policy has faced mounting criticism from vehicle owners, consumer groups and opposition parties. Complaints have centred on lower mileage, compatibility concerns involving older vehicles, possible deterioration of rubber and plastic components, and the absence of a readily available alternative at fuel stations.
The Petroleum and Natural Gas Ministry has acknowledged that E20 may reduce fuel efficiency by about 3 per cent to 5 per cent in some vehicles. The impact varies according to engine design, driving conditions and whether the vehicle was calibrated for higher ethanol content. Ethanol contains less energy per litre than petrol, meaning more fuel may be required to travel the same distance.
Officials and automobile manufacturers maintain that E20 does not present a widespread engine-damage risk when vehicles are properly maintained. Testing conducted by the Automotive Research Association of India, fuel companies, vehicle manufacturers and research institutions has found no broad pattern of mechanical failure linked to the blend.
The dispute has nevertheless intensified because many cars and two-wheelers sold before the adoption of E20 were originally certified for E10 or lower blends. Owners have sought clearer guarantees from manufacturers on warranties, component durability and long-term maintenance costs. Consumer advocates have also questioned why ethanol blending has not resulted in lower pump prices.
Gadkari said consumers would continue to have access to suitable fuel choices, but indicated that pure petrol would be priced as a premium product. Oil companies would need separate tanks, transport arrangements and dispensing facilities to offer it at scale, raising the cost of supplying a fuel purchased by a smaller section of motorists.
The minister has long promoted ethanol, methanol, hydrogen, compressed biogas and electric mobility as alternatives to conventional fuels. He has argued that diversification can reduce the country’s large energy import bill while supporting rural industries and converting agricultural residue into commercially valuable fuel.
Questions about a possible conflict of interest gained traction after attention turned to CIAN Agro Industries and Infrastructure, a listed company led by Gadkari’s son Nikhil Gadkari. The company operates across agro-processing, edible oils, infrastructure and other businesses and has expanded into ethanol production.
Gadkari said the family’s commercial activities existed before the government accelerated the blending programme and that neither he nor his sons shaped national policy for private gain. He maintained that ethanol represented a limited component of the group’s overall operations and challenged critics to produce evidence of wrongdoing.
The government has defended the programme as an energy-security measure that reduces crude imports and supports domestic feedstock producers. Ethanol is manufactured from sugarcane derivatives, damaged food grains, maize and other agricultural materials. Policy changes have encouraged greater use of grain-based ethanol to reduce dependence on sugar production cycles.
The programme has attracted substantial investment in distilleries, storage facilities and supply networks. Banks and companies have committed large sums to new capacity, making any reversal to lower blending levels economically disruptive. The government has said a retreat from E20 could threaten investments and weaken demand for crops used in biofuel production.
Environmental benefits remain part of the official case, though researchers say the overall impact depends on cultivation methods, water use, transport, processing energy and changes in land use. Ethanol can reduce some tailpipe emissions and improve octane levels, but poorly managed production may increase pressure on food supplies and natural resources.
