Punjab Assembly passes resolution to suspend rollout of E20 fuel

In its resolution, the House expressed serious concern over the decision of the Centre to mandate the nationwide supply of E20 fuel "without adequately safeguarding the interests of consumers, vehicle owners and the states".

The Punjab Assembly on Tuesday passed a resolution urging the Centre to review and suspend the mandatory rollout of E20 ethanol blended fuel for vehicles until all concerns are comprehensively addressed.

The AAP government moved the resolution on a day party chief Arvind Kejriwal marched towards the Prime Minister’s residence in the national capital with over 2.30 lakh petitions against E20 petrol but was stopped by Delhi Police and later held a sit-in on Firoz Shah Road as part of the agitation against the blended fuel policy.

On the second day of the Monsoon session of the Punjab Assembly here, Finance Minister Harpal Singh Cheema moved the resolution and e criticised the mandatory implementation of 20 per cent ethanol blending (E-20 petrol) from April 2026.

Cheema also questioned why the implementation of the E20 fuel policy has been advanced as against the earlier target of implementing it in 2030. Highlighting that the US produces 60 per cent of the world’s ethanol while India produces only 5 per cent, Cheema accused the BJP-led central government of surrendering to the United States at the cost of Indian consumers and vehicle owners.

In its resolution, the House expressed serious concern over the decision of the Centre to mandate the nationwide supply of E20 fuel “without adequately safeguarding the interests of consumers, vehicle owners and the states”.

“This House notes that while the objectives of reducing crude oil imports, enhancing energy security and promoting cleaner fuels are important national priorities, such policies must be implemented in a manner that is transparent, scientifically validated and sensitive to the concerns of citizens and state governments,” it said.

The compulsory use of E20 raises legitimate concerns regarding engine compatibility, accelerated wear and tear of fuel system components, reduced fuel efficiency and mileage, increased maintenance costs, possible warranty disputes and diminished resale value, read the resolution.

It expressed concern that the increased operating and transportation costs would inevitably raise the cost of cultivation, movement of goods and essential commodities, thereby adding to the financial burden of ordinary citizens.

Through the resolution, the Union government was urged to review and suspend the compulsory nationwide rollout of E20 petrol for vehicles not originally designed or certified for E20 fuel until all concerns relating to vehicle compatibility, consumer protection, scientific evaluation and State-specific impacts are comprehensively addressed.

Consumers should be given the option to choose between ethanol-free petrol and E20 petrol, and owners of vehicles not originally designed or certified for E20 fuel should not be compelled, directly or indirectly, to use E20 until their vehicles are demonstrably certified as fully compatible with higher ethanol blends, it said.

The Centre should constitute an independent committee comprising automobile engineers, petroleum experts, environmental scientists, consumer organisations and representatives of state governments to undertake a comprehensive assessment of vehicle compatibility, fuel efficiency, maintenance costs, etc, and place its findings in the public domain, stated the resolution.

Cheema, while referring to “damage” to vehicles due to E20 fuel, said repairing such a car costs between Rs 25,000 and Rs 50,000.

He criticised the petroleum ministry for failing to provide alternative options for citizens with older vehicles, warning that delivery boys and small business owners risk losing their livelihoods if their vehicles break down every few months.

He claimed even Union Minister Nitin Gadkari admitted in Parliament to a 6 per cent drop in fuel mileage, though actual efficiency losses are much higher.

“The unilateral imposition of policies without consulting domestic scientists, manufacturers, parliamentarians, or the general public is condemnable. The policy is selling out the country to corporate interests,” he alleged.

Ethanol production consumes massive amounts of water, which poses a grave threat to Punjab’s already depleted groundwater table, claimed Cheema.