Akhilesh Yadav Slams Fuel-Blending: ‘Ethanol Is New Name For Profiteering’

Lucknow: Samajwadi Party president Akhilesh Yadav on Monday alleged that ethanol has become "a new name for profiteering" and claimed that the Centre's ethanol-blending policy was benefiting a select group at the cost of consumers.

In a statement, the former Uttar Pradesh chief minister described ethanol as "a government-backed blend" involving the government, ethanol manufacturers and oil companies.

"'Ethanol' is the new name for profiteering. It is a three-way partnership between the government, ethanol producers and oil companies," Yadav said.

He said the government has justified ethanol blending by claiming it would reduce pollution and lower the country's crude oil import bill, but alleged that consumers were facing several problems that were not being acknowledged.

"The government is not telling people that ethanol reduces vehicle mileage, causes vehicles to deteriorate faster and increases starting problems.

Consumers are forced to buy more fuel because of lower average, vehicles are breaking down on roads, maintenance costs have increased, resale value has declined and the overall life of vehicles has been reduced," he said.

Yadav further claimed that ethanol was increasing problems related to corrosion and wear and tear, particularly in older vehicles that were not designed to run on higher ethanol blends.

"Old vehicles are not built to suit ethanol. Insurance companies have their own objections and get another excuse to reject claims when cars and motorcycles develop faults," he alleged.

The SP chief said rising fuel costs and vehicle maintenance expenses were placing an additional burden on middle-class families and young people purchasing vehicles through loans.

"When parents somehow buy a motorcycle worth lakhs of rupees for their children or young people fulfil their dream of owning a car through loans, they are worried not only about expensive fuel but also about the increasing repair costs due to ethanol," he said.

Yadav also claimed that using food crops for ethanol production could push up food inflation and adversely affect the environment, as the process is water-intensive.

"The government should explain why it is exploiting the public for the benefit of a handful of profiteers," he said.