Chandigarh: The Punjab Assembly on Tuesday unanimously passed a resolution urging the Centre to defer the mandatory implementation of E20 petrol (20% ethanol-blended petrol) for vehicles that were not originally designed to run on the fuel. The House said the policy has severely impacted Punjab’s used-car market, estimated to be worth around ₹1,000 crore.
According to the resolution, uncertainty over E20 compatibility has led to a sharp decline in demand for older petrol vehicles. Buyers are increasingly opting for diesel or electric vehicles, leaving used-car dealers with unsold inventory and financial losses.
Punjab has around 1.25 crore registered vehicles, and dealers say consumer sentiment has shifted significantly since the mandatory E20 rollout.
Amarjeet Singh Birdi of Peter Car Bazaar in Ludhiana said petrol vehicle sales have been adversely affected. He cited the case of a recently sold vehicle that developed a fault shortly after refuelling. Although the dealership maintained the car had passed all mandatory quality checks before the sale, it remained unclear whether the issue was caused by ethanol-blended fuel or fuel adulteration at the retail level.
The Assembly urged the Centre to reconsider the mandatory use of E20 fuel in older vehicles until a suitable solution is found for vehicle owners and the used-car industry.
