Petrol dealers in Odisha have formally requested the government to reconsider the E-20 fuel rollout, citing significant operational challenges since its introduction in 2026. According to Zee News, Sasanka Sekhar Sahu, President of the Odisha Petroleum Dealers Association, reported that dealers are facing problems at the pump that were not present before E-20's introduction. The complaints center around vehicle compatibility issues, particularly affecting BS-6 models that are not fully compatible with the new fuel blend. Sahu emphasized that "Earlier, there were no complaints. Now that the E-20 has been introduced, we have problems."
As reported by Zee News, Sahu highlighted that carburettors are getting jammed due to the new fuel blend, creating operational difficulties for petrol pumps. He argued that globally most markets use only 10% ethanol blend in fuel, while India has moved to 20% blend, making Indian-manufactured vehicles largely incompatible with the new fuel. The association president noted that dealers are being questioned by customers despite the fuel switch being a policy decision, with the government having sent them to sell the product. Sahu explained that "The vehicles that are made in India are largely not compatible to the new fuel."
The association has raised concerns about dealer margins remaining unchanged since 2024, despite commitments from the three oil marketing companies to revise margins every six months. According to Zee News, Sahu stated that dealer margins have not increased by 1% or 10% since 2024, with current margins around 10% in India. The government began rolling out ethanol blended petrol in 2023 as part of its Ethanol Blended Petrol programme under the National Biofuel Policy, with the aim to cut oil import dependence, reduce emissions and support farmers.
As reported by Zee News, the Odisha Petroleum Dealers Association plans to formally request the government to reconsider the E-20 mandate and introduce 10% ethanol blend instead. Sahu suggested that dealers support the broader ethanol programme but want a phased approach starting with 10% ethanol blend to ensure vehicle readiness and maintain margins that keep pace with costs. The association argues that this approach would address both compatibility issues and dealer profitability concerns simultaneously, with Sahu stating "We will request the government to reconsider the E-20. We will introduce the ethanol at ten percent. There will be no problem."
