Archive · 24 Aug 2026
Kejriwal Links E20 Petrol Concerns to Rising Sugar Prices
E20 petrol is fuel made with 20 percent ethanol and 80 percent petrol.
Arvind Kejriwal says this fuel can hurt some vehicle engines and lower mileage.
He says many people sent messages describing similar problems.
He also says sugarcane used to make ethanol may have reduced the amount available for sugar.
According to him, this helped push sugar prices higher.
The government rejected the Opposition’s explanation and blamed sugar producers and traders for raising prices.
Industry representatives said E20 has been carefully tested and is important for reducing oil imports.
The Aam Aadmi Party plans to discuss the issue at a town hall in Goa.
Arvind Kejriwal alleged E20 petrol is damaging vehicle engines and reducing mileage.
He said the Aam Aadmi Party received thousands of public messages about E20 concerns.
Kejriwal linked ethanol production to higher sugar prices, citing diversion of sugarcane equivalent to nearly 25 lakh tonnes of sugar.
He claimed sugar prices rose from about Rs 45 to over Rs 70 per kilogram between July 31 and August 24.
The government rejected the Opposition’s claims, while industry executives said E20 is scientifically tested and safe for vehicles.
- Who
- Arvind Kejriwal and the Aam Aadmi Party raised concerns; the government and industry executives disputed them.
- What
- Kejriwal alleged that E20 petrol damages engines, reduces mileage, and has contributed to higher sugar prices.
- When
- He made the allegations on Monday, August 24; a town hall was planned for Tuesday. E20 became the only petrol variant at fuel pumps from April 2026, according to the report.
- Where
- Panaji, Goa, during Kejriwal’s two-day tour of the state.
- Why
- Kejriwal said ethanol blending diverted sugarcane from sugar production and caused vehicle problems, while the government said the industry was responsible for higher sugar prices.
Kejriwal and E20 Critics
Government and Industry Response
Vehicle safety and mileage
Kejriwal and E20 Critics
Kejriwal said public reports indicate that E20 damages engines, affects fuel systems, and reduces mileage; some motorists want lower blends such as E10.
Government and Industry Response
Industry executives said E20 has undergone rigorous scientific testing and is safe for both new and older vehicles.
Sugar prices and ethanol production
Kejriwal and E20 Critics
Kejriwal alleged that diverting sugarcane for ethanol created a sugar shortage and contributed to prices rising above Rs 70 per kilogram.
Government and Industry Response
The government rejected the Opposition’s claims and blamed the industry for raising sugar prices despite sufficient stock to meet domestic demand.
Purpose of the E20 policy
Kejriwal and E20 Critics
Kejriwal claimed the policy failed to produce the projected foreign-exchange savings and alleged that imports offset any savings.
Government and Industry Response
The government introduced E20 to reduce vehicle emissions and dependence on crude-oil imports; industry executives described it as critical to that goal.
- E20 composition
- 20 percent ethanol and 80 percent petrol.
- Reported rollout
- E20 became the only petrol variant available at fuel pumps from April 2026.
- Kejriwal’s vehicle claim
- He alleged engine damage, affected fuel systems, and substantial mileage losses.
- Sugarcane diversion claim
- He alleged sugarcane equivalent to nearly 25 lakh tonnes of sugar was diverted to ethanol production.
- Reported sugar price change
- Kejriwal said prices rose from around Rs 45 per kilogram on July 31 to more than Rs 70 per kilogram by August 24.
- Government position
- The government rejected the Opposition’s claims and blamed the industry for increasing sugar prices despite sufficient domestic stock.
- Industry position
- Industry executives said E20 underwent rigorous scientific testing, is safe for new and older vehicles, and reduces dependence on imported crude oil.