The exchange began after Kejriwal shared a video on social media, claiming that several vehicle owners and mechanics in Delhi had complained about problems linked to E20 fuel.
"Do watch this video. Yesterday, I spoke to some car mechanics and vehicle owners in Delhi about ethanol. There was a queue of vehicles allegedly damaged due to E20. Mileage has also dropped significantly. Everyone is troubled," Kejriwal wrote on X. He further alleged that the Centre should stop "forcing E20" on people, adding that "television interviews and fake press conferences cannot change the ground reality".
Responding to the post, Malviya accused the former Delhi Chief Minister of resorting to misinformation.
"Arvind Kejriwal is once again indulging in politics of lies and fear. If E20 had really been damaging vehicles on a large scale, roads across the country would have been filled with stranded cars and two-wheelers over the past five years," Malviya wrote on X.
He said E15 had been introduced in 2021, E19 in 2024 and E20 had been available since April 2025, adding that around 2.5 crore petrol cars and over 20 crore two-wheelers were currently running on E15-plus blended fuel.
Malviya further argued that if Kejriwal's claims were true, insurance premiums would have increased and the second-hand petrol vehicle market would have collapsed. Instead, he said, India's used car market currently sees annual sales of around 60 lakh vehicles, valued at over $40 billion, with estimates projecting it to grow to $70-82 billion by FY2031.
"You can spread lies by showing a few selected videos, but you cannot change the truth. Arvind Kejriwal is once again selling confusion and falsehood instead of facts," he said.
AAP MLA Sanjeev Jha hit back, accusing the BJP leader of ignoring public concerns.
"Don't bury your head in the sand like an ostrich and pretend there is no storm. Step onto the streets and speak to people. Many vehicle owners are saying their bikes and cars are delivering lower mileage, engine problems have increased and maintenance costs have gone up," Jha wrote on X.
He added that companies benefiting from ethanol would naturally support the policy, but it was the government's responsibility to take public complaints seriously and order an impartial inquiry into the issue.
The exchange comes amid an intensifying political debate over the Centre's ethanol-blending programme, with the AAP questioning its impact on consumers and the BJP defending the policy as safe and widely adopted.