Petrol dealers in Odisha have urged the central government to reconsider the nationwide rollout of E20 petrol, citing rising customer complaints, vehicle compatibility concerns and the lack of promised revision in dealer margins.
Odisha Petroleum Dealers Association President Sasanka Sekhar Sahu told ANI that fuel retailers have been facing operational challenges since E20 fuel was introduced in 2026.
India began introducing ethanol-blended petrol under its Ethanol Blended Petrol (EBP) programme in line with the National Biofuel Policy to reduce crude oil imports, lower emissions and support farmers through increased ethanol production.
Sahu said dealers had not encountered such issues before the introduction of E20 fuel. However, he claimed that many customers are now reporting mechanical problems, particularly in vehicles that are not fully compatible with the higher ethanol blend.
"Earlier, there were no complaints. Now that E20 has been introduced, we have problems," he said, alleging that components such as carburettors are getting clogged in some vehicles.
According to Sahu, frustrated customers often direct their grievances at petrol pump operators, even though dealers are only supplying fuel approved by the government.
"A car's carburettor gets jammed. There are many problems. They come and make a mess at the petrol pump. The owner of the petrol pump has nothing to do with it. The government has introduced it. It has sent us. We have sold it," he said.
He also argued that most countries continue to use petrol blended with up to 10% ethanol, while India has moved to a 20% blend. According to him, a large number of vehicles currently operating on Indian roads, including several BS-VI models, are not fully compatible with E20 fuel, leading to concerns among consumers.
Apart from the fuel compatibility issue, the association has also raised concerns over dealer remuneration. Sahu said the country's three oil marketing companies (OMCs) had assured dealers in 2024 that fuel retail margins would be reviewed every six months, but no revision has taken place since then.
He claimed dealer margins have remained unchanged despite rising operating costs, adding that retailers are finding it increasingly difficult to sustain their businesses without periodic revisions.
The Odisha Petroleum Dealers Association plans to formally approach the government, requesting it to reconsider the mandatory use of E20 fuel and temporarily revert to a 10% ethanol blend until vehicle compatibility improves.
Sahu said dealers support the government's broader objective of promoting ethanol blending but believe the transition should be implemented in phases. He suggested that adopting E10 fuel as an interim measure, while ensuring dealer margins are revised in line with operational costs, would help ease concerns among both retailers and consumers.