Congress Demands Immediate Suspension and Independent Review of E-20 Fuel Rollout Raises Questions on Consumer Losses, Conflict of Interest, and Goa’s Ecology

Goa Khabar:Goa Pradesh Congress Committee Working President Sunil Kawthankar today addressed a press conference in the presence of GPCC GS Everson Vales and GPCC Spokesperson Samil Volvoikar

Sunil Kawthankar has demanded an immediate suspension of the blanket implementation of E-20 ethanol blended petrol in Goa until an independent scientific, economic, and environmental assessment is conducted. He alleged that the policy has been imposed without adequately safeguarding the interests of lakhs of vehicle owners and has primarily benefited a select group of ethanol manufacturers.

Addressing a press conference, Kawthankar said that the BJP Government has portrayed E-20 as a green revolution and a farmer-friendly policy. However, several technical studies, field observations, and growing public complaints raise serious questions regarding its impact on vehicle performance, maintenance costs, consumer expenditure, and the environment.

Vehicle Damage and Higher Maintenance Costs

Kawthankar pointed out that studies conducted by the Automotive Research Association of India (ARAI) indicate that higher ethanol blends can accelerate deterioration of non-metallic components such as rubber hoses, seals, O-rings and gaskets. Since ethanol absorbs moisture from the atmosphere, humid coastal states like Goa face an even greater risk of corrosion in fuel lines and tanks.

He said the consequences for consumers could include:

Accelerated wear of fuel system components.

Frequent replacement of rubber and plastic parts.

Higher vehicle maintenance costs.

Reduced resale value of vehicles.

Increase in insurance claims leading to higher insurance premiums.

He questioned whether vehicle owners whose vehicles were never designed for E-20 would receive any compensation if damage occurs.

Lower Mileage Means Higher Fuel Bills

Kawthankar stated that ethanol contains significantly lower energy than pure petrol.

Kawthankar highlighted the facts that according to studies commissioned by government agencies,

Vehicles not specifically tuned for E-20 may experience around 3-5% reduction in mileage.

Even E-20 compatible vehicles may experience 1-2% reduction in fuel efficiency.

He explained that a vehicle traveling approximately 15,000 kilometers annually at an average mileage of 15 km/liter consumes nearly 1,000 liters of fuel every year.

A reduction of only 3-5% in mileage could require approximately 30-40 additional litres of fuel annually, translating into ₹3,000-₹4,000 additional fuel expenditure every year for ordinary vehicle owners at prevailing fuel prices these are Government figures he said a recent survey by local circles found almost 66% pre 2023 vehicles have a more than 10% drop in mileage which pegs the additional expenditure to almost 8000 every year to the vehicle owners.

He specially highlighted the plight of lakhs of middle-class families, taxi operators, traditional fishermen, delivery workers, motorcycle pilots, rickshaw drivers, and small businesses. This becomes a permanent annual burden.”

No Reduction in Petrol Prices

Kawthankar questioned the BJP Government’s economic logic.

“If ethanol is cheaper than petrol and is being blended to reduce India’s import bill, why has the government not reduced petrol prices?”

He said consumers are facing a double burden:

No reduction in petrol prices.

Lower mileage.

Possible increase in maintenance costs.

“This is effectively asking people to pay the same amount for less value.”

Are Existing Vehicles Compatible?

Kawthankar asked several important questions that the government has failed to answer.

Are nearly 80% of vehicles presently on Goa’s roads fully compatible with E-20 fuel?

What happens to vehicles manufactured before widespread E-20 compatibility standards?

Will vehicle manufacturers honor warranties?

Will insurance companies compensate owners if ethanol-related damage occurs?

He said millions of vehicle owners deserve clear answers before being compelled to use higher ethanol blends.

Questions Over Conflict of Interest

Kawthankar also raised serious questions regarding possible conflicts of interest.

He alleged that companies reportedly linked to Union Minister Nitin Gadkari’s family, including CIAN Agro and Manas Agro, have witnessed extraordinary financial growth during the aggressive expansion of India’s ethanol blending programme.

According to figures cited by Kawthankar:

Revenue of one such company reportedly increased from approximately ₹17 crore in mid 2024 to around ₹523 crore by mid-2025.

Its share price reportedly increased from around ₹41 to nearly ₹3,200 over the same period.

“If these figures are correct, the country deserves complete transparency. Public policy must never create even the appearance that private commercial interests are benefiting from the government decisions, and here, a senior minister father pushes and advocates a policy which seems to have directly benefitted his sons business whereas crores of consumers are suffering..

He demanded disclosure of all direct and indirect commercial interests connected with ethanol production involving policymakers or their immediate family members.

Goa’s Ecology Cannot Be Ignored

Kawthankar said Goa can not blindly adopt national policies without considering its unique environmental conditions.

He pointed out that ethanol production is highly water intensive and that distilleries generate industrial wastewater requiring strict environmental safeguards.

He warned that large-scale expansion of ethanol production could adversely affect:

Water resources.

Rivers.

Agricultural sustainability.

Goa’s fragile ecological balance.

Congress Demands

The Congress Party demanded:

Immediate suspension of blanket implementation of E-20 in Goa until independent scientific validation is completed.

A Goa-specific study by independent experts on vehicle compatibility, mileage loss, and maintenance costs.

A detailed economic assessment of the additional burden on consumers.

Public disclosure by automobile manufacturers regarding which models are genuinely E-20 compatible.

Written clarification from the government with regards to insurance companies stand regarding coverage for ethanol-related damage.

Complete transparency regarding any conflict of interest involving policymakers connected with the ethanol industry.

An independent environmental impact assessment of ethanol production and its implications for Goa.

Triple Burden on the Common Citizen

Kawthankar described the E-20 policy as a “triple attack on the common man.”

According to him, consumers face:

1. There is no reduction in petrol prices despite ethanol blending.

2. Reduced mileage leads to higher fuel consumption.

3. Increased maintenance and repair costs due to possible vehicle damage.

“The BJP Government claims this policy benefits farmers and protects the environment. However, unless it can demonstrate that ordinary citizens will not suffer economically, mechanically and environmentally, the policy cannot be justified, it seems this policy is specially engineered to benefit small circle of BJP linked entrepreneurs at the cost of comon man, it has got nothing to do with green revolution its corporate family promotion scheme.

“The people of Goa deserve transparent answers, scientific evidence, and complete accountability before they are forced to bear the costs of a policy whose benefits appear to be concentrated among a select few,” Kawthankar concluded.

Ge further examined how neighboring Bhutan imports pure petrol from India and with just 10 % tax sells for 97 whereas same pure petrol in india is around 160-170 rs with almost 50% tax

He slammed the bjp leadership, claiming

One prince is given E20

Another prince is given T20, and the big emperor who once famously said ” Na khaunga Na Khane Dunga” is busy doing 420 on the entire nation.