‘Gadkari had promised petrol would be available at ₹15': Tehseen Poonawalla questions E20 fuel pricing

Political analyst Tehseen Poonawalla questioned the government's fuel policy, and he asked why greater emphasis was not being placed on promoting electric vehicles (EVs) through incentives and discounts.

Referring to earlier remarks by Union Minister for Road Transport and Highways, Nitin Gadkari, he noted that petrol blended with ethanol had once been projected to cost as little as ₹15 per litre, but claimed that promise had failed to materialise.

He argued that consumers should at least receive discounts on ethanol-blended fuel rather than face high prices for conventional petrol.

Raising concerns over the lack of progress on EV adoption, he also questioned the status of the government's EV policy and described the ₹15-per-litre petrol claim as a “jumla.”

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What was Gadkari's statement?

Earlier in July 2023, Gadkari, had said that if an average of 60% ethanol and 40% electricity is taken, then petrol will be available at the rate of ₹15 per litre and the people will benefit.

While addressing the public in Pratapgarh, Rajasthan, Gadkari said, “If an average of 60% ethanol and 40% electricity is taken then petrol will be available at the rate of ₹15 per litre and the people will be benefitted. Pollution and import will reduce. The import is of ₹16 Lakh Crores, this money will go to the homes of farmers instead.”

India introduced its Ethanol Blended Petrol (EBP) Programme in January 2003 to encourage the use of cleaner transportation fuels, reduce dependence on imported crude oil, and provide a reliable domestic market for ethanol, benefiting sectors such as the sugar industry.

The programme initially mandated the sale of petrol blended with 5 per cent ethanol in select states and Union territories.

More than two decades after its launch, the ethanol blending programme has made substantial progress. By 2026, India had exceeded its target of achieving 20 per cent ethanol blending in petrol, while the government proposed changes to motor vehicle regulations to facilitate the use of higher ethanol blends, including E85 and E100 fuels.

Govt waives excise duty on ethanol-blended petrol

Earlier, on June 11, the government had exempted several ethanol-blended petrol variants from excise duty, according to a notification issued by the finance ministry.

The exemption applies to E22, E25, E27, and E30 petrol, containing 22 per cent, 25 per cent, 27 per cent, and 30 per cent ethanol, respectively. The notification stated that the excise duty on these fuel variants has been reduced to zero.

The measure is intended to promote the adoption of ethanol-blended fuels and encourage consumers to shift away from conventional petrol.

The decision comes amid a sharp increase in fuel prices, with petrol and diesel rates rising by nearly ₹7.50 per litre during the latter half of May.

Earlier, in March, the government reduced excise duty on petrol and diesel by ₹10 per litre, a move that resulted in an estimated annual revenue loss of more than ₹1 lakh crore. The tax cut was aimed at cushioning consumers from soaring global crude oil prices triggered by the conflict in West Asia.

(With inputs from agencies)