Petrol dealers in Odisha have formally requested the government to review the mandatory E-20 ethanol-blended fuel rollout, citing widespread customer complaints, vehicle compatibility issues, and a long-pending commitment to revise dealer margins. Sasanka Sekhar Sahu, President of the Odisha Petroleum Dealers Association, conveyed these concerns in an exclusive interview with ANI.
E-20 Introduction and Dealer Challenges
The government began rolling out E-20 fuel in 2023 under the Ethanol Blended Petrol programme, part of the National Biofuel Policy, aiming to reduce oil import dependence, lower emissions, and support farmers. However, Sahu stated that dealers have faced significant problems since the 20% ethanol blend was introduced in 2026. "Earlier, there were no complaints. Now that the E-20 has been introduced, we have problems," he said.
According to Sahu, many vehicles on Indian roads, particularly BS-6 models, are not fully compatible with the higher ethanol content. He described incidents where carburettors jam and customers confront pump owners. "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 explained.
Global Comparison and Vehicle Readiness
Sahu pointed out that most global markets use only a 10% ethanol blend, whereas India has moved directly to 20%. "The vehicles that are made in India are largely not compatible to the new fuel," he said, adding that dealers bear the brunt of customer frustration even though the policy was a government decision. He urged a phased approach, suggesting a return to E-10 until vehicle compatibility improves.
Pending Margin Revision
The association also pressed for action on dealer margins. Sahu noted that in 2024, the three state-owned oil marketing companies (OMCs) committed to revising dealer margins every six months. However, "the dealer margin has not increased by one or ten percent since 2024," he said. Currently, the dealer margin in India stands at around 10%. He called on the government to address both the fuel blend issue and margin revision simultaneously.
Formal Request for Reconsideration
Sahu confirmed that 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, advocating for a return to E-10 until vehicle compatibility is ensured. While dealers support the broader ethanol programme, they want a phased rollout that aligns with vehicle readiness and ensures margins keep pace with operational costs.
