India's Ethanol Push Faces First Major Driver Protest

Indian motorists will gather in New Delhi on Sunday for the first major protest against a flagship biofuel program meant to cut crude imports and support farm incomes. The government's accelerated shift to gasoline with a higher percentage of ethanol – a signature self-reliance policy for Prime Minister Narendra Modi – has angered drivers, whose complaints include weaker fuel efficiency, higher maintenance costs and engine corrosion.

The government and automakers have been on the defensive after weeks of complaints on social media. Authorities sought to contain the controversy by convening a media briefing with auto industry executives on Saturday. Carmakers dismissed the complaints as unfounded.

"We are very confident that we haven't seen any glaring issues on social media that warrant a rethink of the government's biofuel blending program," said Puneet Anand, associate vice president at Hyundai Motor India. Speaking separately in Rajasthan, Oil Minister Hardeep Singh Puri blamed vested interests for spreading misinformation.

The backlash comes as Modi seeks to expand one of his signature energy initiatives. 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.

Automakers said E20 had undergone extensive testing before its nationwide rollout. Vehicles designed for E20 have been on sale since 2025, while 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 tradeoff 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. He also rejected claims that ethanol attracts ants, saying gasoline's odor repels insects.

For consumers, the biofuel debate comes as vehicle ownership costs continue to climb. 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 program increasingly important to the government's energy strategy.

The protest Sunday will test whether the government can sustain public support for a policy that touches both energy security and electoral politics. A sustained backlash could slow the timeline for raising the blend mandate beyond 20%, even as the country's gasoline demand growth keeps the import-reduction logic intact.