Karnataka E31 petrol row: ‘Rs 1 lakh crore debt, so you’re forced to use ethanol’
Amid Karnataka's petrol tests detecting ethanol concentrations as high as 31.2 per cent, political analyst Tehseen Poonawalla alleges that ethanol distilleries carrying nearly Rs 1 lakh crore in debt are driving the push for higher ethanol blending.
Political analyst Tehseen Poonawalla has alleged that India's aggressive ethanol-blending programme is being driven, in part, by the need to rescue financially distressed ethanol distilleries, claiming that the government is effectively forcing motorists to use higher ethanol-blended petrol to protect an industry burdened with nearly Rs 1 lakh crore in debt.
“We have to give you ethanol zabardasti (forcibly) in your car even though 80 to 90 per cent of vehicles are E10 compliant because ethanol distilleries have a collective debt of about Rs 1 lakh crore,” Poonawalla claimed, citing conversations with senior ministry officials during a panel discussion on The Federal’s AI With Sanket.
Karnataka test findings
His remarks come amid growing concerns over the quality and composition of petrol following tests commissioned by the Karnataka government, which reportedly detected ethanol concentrations as high as 31.2 per cent in samples collected from petrol pumps across the state.
Also read: E20 fuel: Karnataka govt says oil companies sold petrol with up to 31.2 pc ethanol
The findings have raised questions about whether motorists are receiving fuel with ethanol concentrations exceeding the government's E20 benchmark.
Speaking alongside BJP member and political analyst Alok Vats and automobile expert Rattan Dhillon, Poonawalla questioned the rationale behind the ethanol-blending policy, alleging that financial considerations were taking precedence over consumer interests.
Poonawalla questions financial rationale behind ethanol push
Poonawalla argued that the push for higher ethanol blending cannot be viewed merely as an energy policy, alleging that it is also linked to the financial exposure of sugar mills and distilleries, including those owned by politically influential individuals across party lines.
Also read: Oil marketing companies reject Karnataka govt's claim of 31 pc ethanol in petrol
He claimed that these distilleries have accumulated debts of more than Rs 1 lakh crore from public sector banks and alleged that the pressure to increase ethanol consumption was consequently being passed on to ordinary vehicle owners.
BJP member Vats acknowledged that concerns surrounding ethanol-blended petrol had been raised by motorists previously, with vehicle owners reporting reduced mileage, engine performance issues and problems with spark plugs.
While noting that complaints had subsequently subsided, Vats said the Karnataka test results could not simply be dismissed as political allegations.
He called on the Centre and oil marketing companies, including Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), to address consumer concerns through standardised testing and greater disclosure.
Auto expert flags risks to older vehicles
Automobile expert Dhillon questioned the consistency of ethanol blending, referring to Indian Oil Corporation data that reportedly showed ethanol concentrations ranging between 19 and 21 per cent.
He argued that readings above the 20 per cent benchmark raised questions about the precision of blending operations and the monitoring mechanisms in place.
Dhillon also supported the need for independent verification of fuel composition, referring to what he described as variations in blending levels across different locations.
