Ethanol blending saved ₹1.90 lakh crore in forex, earned farmers ₹1.60 lakh crore: Karnataka BJP
Synopsis
Key Takeaways
Karnataka Leader of the Opposition R. Ashoka on Thursday, 12 November 2026, charged that the ruling Congress government in the state deliberately stoked an ethanol controversy to deflect public attention from its own failures, including the inability to deliver drought relief to farmers. Speaking at a press conference in Bengaluru, Ashoka cited national data to defend the Centre's ethanol blending programme, asserting it has delivered measurable benefits to both the economy and the farming community.
National gains from ethanol blending
Ashoka pointed to figures covering the period from 2014-15 to May 2026, arguing that ethanol blending with petrol has generated ₹1.90 lakh crore in foreign exchange savings for the country. He added that more than 310 lakh tonnes of crude oil consumption has been avoided and approximately 930 lakh metric tonnes of carbon dioxide emissions reduced over the same period. Farmers across the country, he said, have collectively earned more than ₹1.60 lakh crore in additional income as a direct result of the programme.
Karnataka Congress accused of selective testing and misinformation
Ashoka alleged that the state government conducted tests on only 11 out of 63 fuel samples and withheld the remaining results from the public. He questioned whether the samples were drawn from Congress-affiliated petrol pumps and noted that the government had not disclosed which outlets were tested. He further alleged that testing was not conducted in line with Central Government guidelines, and that legal provisions under Section 8/2 of the 2005 UPA-era legislation — which require six samples to be collected and results communicated to the outlet owner within five days — were not followed.
Revenue figures and state government accountability
The opposition leader pointed out that the Congress government in Karnataka itself earned ₹10,308 crore in revenue from ethanol in 2025-26. He noted that while the Centre collects ₹12 per litre from petrol, the state government collects ₹24-25 per litre — making the state a larger revenue beneficiary from fuel sales. Despite this, he argued, the state was raising alarms about the same blending it profits from. Raids were conducted on 805 petrol bunks, but no disclosure was made on how many entities faced action, he said.
Congress drought relief failures and farmer income claims
Ashoka criticised the state government's handling of drought relief, saying it announced ₹2,500 per farmer but disbursed only ₹1,500 in Yadgir, with the Revenue Minister attributing the shortfall to a 'mistake'. He contrasted this with Prime Minister Narendra Modi's Kisan Samman scheme, which transfers ₹6,000 directly to farmers' bank accounts nationally. He also criticised an IAS officer in Hassan who reportedly posted on social media that 'if the lion sleeps, dogs will bark', calling it a reflection of deteriorating administrative standards.
Global context and historical position
Ashoka noted that more than 80 countries blend ethanol with fuel, and cited the United States, Brazil, and Vietnam as examples where the practice supports farmers. He recalled that when he served as Transport Minister, he personally appealed to then-Prime Minister Manmohan Singh to allow ethanol blending, but was denied permission, attributing that resistance to what he described as a petroleum lobby. He also pointed out that Belagavi Congress leaders had previously demanded ethanol procurement, in apparent contradiction to the current stance of Bengaluru Congress leaders opposing it. Echoing a sarcastic note, he referenced Rahul Gandhi's 'potato-to-gold' remark, suggesting the Congress was seeking predetermined conclusions from its tests. The ethanol pricing point he raised: at ₹56.70 per litre, ethanol is priced above petrol at ₹53 per litre, meaning oil companies do not derive excess profits from the blend, he argued. The road quality issue also featured: Ashoka claimed BMTC buses in Bengaluru have seen mileage drop from 18 km per hour to 11 km per hour — a decline he attributed to potholed roads rather than ethanol. The coming days will determine whether the state government responds to Ashoka's demand for full disclosure of all 63 fuel sample test results.