Petrol dealers in Odisha seek review of E-20 rollout, cite vehicle issues and pending margin revision
New Delhi, July 6
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, Odisha Petroleum Dealers Association President, Sasanka Sekhar Sahu said in an exclusive conversation with.
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.
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.
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.
— ANI
Reader Comments
I understand the environmental goals but this is poorly planned. Most two-wheelers and older cars aren't compatible. The government should first ensure all vehicles are E20 ready, educate the public, and most importantly—fix the dealer margins. Dealers are the frontline, if they are unhappy, customers suffer.
Interesting. I'm from the US and we use E10 mostly. Jumping to E20 without infrastructure or vehicle upgrades seems rushed. The dealer margin issue is huge—if they aren't making money, service quality drops. India should take a phased approach like Brazil did over decades, not overnight.
I support the idea of reducing oil imports and helping farmers with ethanol, but the execution is a mess. My uncle's auto rickshaw broke down twice after using this fuel. The government should listen to the dealers—they face angry customers daily. Better to go back to E10 and gradually test E20.
I work at a petrol pump in Bhubaneswar. The number of customers complaining about mileage drop and engine noise has increased 3x since E20 started. We can't explain policy to every angry driver. The margin issue is real—our salary depends on it. Government should stop these big announcements and fix ground realities first.
Interesting perspective. In Canada we moved to E10 slowly after years of testing. India's leap to E20 is ambitious but risky for older vehicles. The dealers make a good point—why should they bear the brunt of customer anger over a government policy? Needs better coordination between OMCs, automakers, and dealerships.
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