E20 woes: Petrol dealers urge Centre to review rollout, say ‘carburettors get jammed’

The E20 Woes: A Growing Concern for Petrol Dealers

Theindiapostdaily.com – India’s E20 woes have intensified as petrol dealers across the nation voice growing frustrations over the nationwide rollout of Ethanol Blended Petrol (EBP) under the National Biofuel Policy. E20, which blends 20% ethanol with 80% conventional petrol, was introduced with the goal of reducing reliance on crude oil, lowering greenhouse gas emissions, and supporting the agricultural sector by promoting ethanol production. However, its implementation has sparked concerns, particularly among dealers who report operational challenges, customer complaints, and a lack of progress in addressing their margin revisions. The program, launched in 2026, aims to meet international sustainability targets, but its current state has left many questioning its viability.

Technical and Operational Challenges with E20 Implementation

As E20 woes persist, petrol retailers are raising alarms about the technical difficulties associated with the fuel blend. Many vehicles, especially older models, are experiencing mechanical issues, including jammed carburettors, engine misfires, and fuel system clogging. These problems have led to increased service costs for customers and a decline in trust in the new fuel. Sasanka Sekhar Sahu, President of the Odisha Petroleum Dealers Association, highlighted that the transition to E20 has created a ripple effect, with dealers facing pressure to resolve these issues without adequate compensation or support from the government.

“Earlier, there were no complaints. Now that E20 has been introduced, we have problems,”

Sahu’s statement reflects the broader frustration within the industry. While the E20 woes are not universal, they are significant enough to affect a substantial portion of the market. Dealers argue that the lack of proper testing and preparation for the nationwide rollout has left them ill-equipped to handle the challenges. Some have reported that even newer BS-VI compliant vehicles are not fully compatible with E20, causing disruptions in fuel supply and customer dissatisfaction.

Carburettor Problems and Mechanical Glitches

One of the most common complaints from customers is the jamming of carburettors, which are prevalent in older vehicles. This issue has been linked to the ethanol content in E20, as ethanol is more corrosive than traditional petrol and can degrade certain engine components over time. Dealers claim that the problem is exacerbated by the rapid shift to E20 without sufficient awareness campaigns or upgrades to vehicle systems. Many consumers, unaware of the fuel’s properties, have reported repeated breakdowns and maintenance issues, further deepening the E20 woes.

Incompatibility with Older Vehicle Models

India’s vast fleet of older vehicles, many of which were not designed for higher ethanol blends, has become a critical point of contention. The E20 woes are particularly acute in states like Odisha, where a significant portion of the vehicle population relies on carburettor-based engines. Dealers warn that without modifications, these vehicles may suffer long-term damage, leading to higher repair costs and reduced fuel efficiency. This incompatibility has also raised concerns about the economic impact on consumers, who may be forced to bear the brunt of these technical issues.

Dealer Margin Concerns and Financial Impact

Adding to the E20 woes is the issue of stagnant dealer margins, which have not been revised as promised by the oil marketing companies (OMCs). In 2024, OMCs had assured that retail margins would be reviewed every six months, but no adjustments have been made since the rollout. This has left dealers struggling to maintain profitability, especially with rising operational costs and the additional expenses incurred in addressing E20-related problems. Sahu emphasized that a phased approach, starting with E10 (10% ethanol blend), could have eased the transition and mitigated the current E20 woes.

Industry experts agree that the E20 woes stem from a combination of factors, including inadequate preparation, technical challenges, and financial strain on dealers. While the policy’s long-term benefits, such as reducing fossil fuel dependence and lowering carbon emissions, are clear, the immediate impact on the market has been disruptive. The National Biofuel Policy, launched in 2022, sets a target of 20% ethanol blending in petrol by 2030, but the early rollout of E20 has exposed gaps in infrastructure readiness and consumer education. These issues have not only affected dealers but also created uncertainty for the broader automotive and fuel sectors.

As E20 woes continue to mount, the Odisha Petroleum Dealers Association plans to submit a formal petition to the government, urging a temporary rollback to E10 until vehicle compatibility with E20 improves. The association is also calling for increased support, such as financial incentives or technical guidelines, to help dealers adapt to the new fuel. While the government remains committed to the policy, the growing pressure from the industry highlights the need for a more flexible and consumer-centric approach to implementation. The success of E20 will depend on addressing these challenges and ensuring that the benefits of the initiative are not overshadowed by its current drawbacks.