Arvind Kejriwal Questions Ethanol Policy, Says Petrol Vehicle Demand Shift Could Hurt Economy

New Delhi (Rajeev Sharma): Former Delhi chief minister and AAP leader Arvind Kejriwal has raised concerns over the government’s ethanol-blending policy, arguing that a changing preference among car buyers could have a broader impact on the automobile sector and the economy.

Kejriwal’s remarks came in response to a social media post claiming that petrol-powered cars were increasingly being left unsold at dealerships as consumers turned towards CNG and electric vehicles, partly due to concerns over E20 fuel.

“People have stopped buying petrol cars. Govt shud reverse its ethanol policy. Else it will hurt economy very badly,” Kejriwal posted.

E20 fuel debate gains fresh attention

The comments have revived a debate that has been ongoing among motorists and sections of the automobile community over petrol containing a higher proportion of ethanol.

India has been steadily expanding ethanol blending in petrol as part of efforts to reduce crude oil imports, lower dependence on fossil fuels and create greater demand for domestically produced ethanol.

At the same time, some vehicle owners have expressed apprehensions about the impact of higher ethanol blends on older petrol vehicles. Complaints circulating on social media have included claims of reduced mileage and mechanical or performance-related issues.

Buyers increasingly consider alternatives

The Indian automobile market has also been witnessing a gradual shift in consumer preferences. CNG vehicles have attracted buyers looking for lower fuel costs, while electric vehicles have expanded their presence as charging infrastructure and model availability improve.

Against this backdrop, concerns surrounding fuel compatibility could influence some consumers when choosing between petrol, CNG and electric models. However, there is no evidence in the information cited by Kejriwal to establish that E20 concerns alone are responsible for any decline in petrol car sales.

Policy debate likely to continue

Kejriwal’s intervention puts the spotlight back on the government’s ethanol strategy at a time when India is simultaneously pursuing energy security and a transition towards cleaner mobility.

The issue also presents a challenge for automobile manufacturers, who have been adapting vehicles to higher ethanol blends while consumers weigh fuel economy, maintenance costs and long-term vehicle ownership.

As the adoption of E20 continues, the debate over its economic, technical and environmental implications is likely to remain a significant part of India’s automobile and energy policy discussions.

By Rajeev Sharma

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