Petrol dealers in Odisha seek review of E-20 rollout, cite vehicle issues and pending margin revision

New Delhi: Petrol dealers in Odisha have asked the government to reconsider the E-20 fuel rollout, flagging customer complaints, vehicle compatibility issues and a pending commitment on dealer margins, said Sasanka Sekhar Sahu, Odisha Petroleum Dealers Association President.

The government began rolling out ethanol blended petrol in 2023 as part of its Ethanol Blended Petrol programme under the National Biofuel Policy. The aim was to cut oil import dependence, reduce emissions and support farmers.

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Sahu said dealers are facing problems at the pump since E-20 was introduced in 2026. "Earlier, there were no complaints. Now that the E-20 has been introduced, we have problems," he said. According to him, many vehicles on Indian roads, especially BS-6 models, are not fully compatible. 

"A car's carburettor gets jammed. There are many problems. They come and make a mess in 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 argued that globally most markets use only 10 per cent ethanol blend in fuel, while India has moved to 20 per cent blend. The vehicles that are made in India are largely not compatible to the new fuel" Sahu said, adding that dealers are being questioned by customers even though the fuel switch was a policy decision.

The association also sought action on dealer margins. Sahu said, in 2024 the three OMCs had committed to revise dealer margins every six months. "The dealer margin has not increased by one or ten percent since 2024," he said. He noted that in India the dealer margin is around 10 per cent, and urged the government to address this along with the fuel blend issue.

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Sahu said the association will formally request the government to reconsider the E-20 mandate. "We will request the government to reconsider the E-20. We will introduce the ethanol at ten percent. There will be no problem," he said, suggesting a return to E-10 until vehicle compatibility improves.

Sahu signaled that dealers support the broader ethanol programme but want a phased approach and start with a 10 per cent ethanol blend rather than a 20 per cent that aligns with vehicle readiness and ensures margins keep pace with costs.