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Punjab: House passes resolution urging Centre to suspend mandatory rollout of E20 fuel

Mann links ethanol rollout to US trade deal, Congress demands VAT cut and disclosure on biofuel licences

Updated on: Aug 5, 2026, 08:26:03 IST
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The Punjab assembly on Tuesday unanimously passed a resolution urging the Centre not to make ethanol-blended E20 petrol the sole fuel available in the country. The House demanded that vehicle owners should be given the option to choose between pure petrol and E20 fuel, called for a reduction in the price of ethanol-blended petrol and sought the constitution of an expert committee to scientifically examine its impact on vehicles, fuel efficiency and consumers.

Punjab chief minister Bhagwant Mann address the house on the 2nd day of Monsoon session of Punjab in Chandigarh, India, on Tuesday. (Ravi KumarHT)
Punjab chief minister Bhagwant Mann address the house on the 2nd day of Monsoon session of Punjab in Chandigarh, India, on Tuesday. (Ravi KumarHT)

The resolution was adopted by voice vote after a detailed discussion in the House, with both the ruling Aam Aadmi Party (AAP) and the Opposition Congress expressing concern over the implementation of E20 fuel, though differing on the approach to the issue.

Replying to the debate, chief minister Bhagwant Mann alleged that the Centre had imposed E20 fuel across the country despite admitting in Parliament that it reduces vehicle mileage. He claimed the move was intended to serve the interests of a trade agreement with the United States, under which India would increase ethanol imports over the next five years.

“The central government has admitted in Parliament that E20 petrol reduces vehicle mileage. The issue concerns every citizen because it directly affects the running cost of vehicles,” Mann said.

Claiming that ethanol-blended fuel had been introduced without adequate scientific research or consultation with stakeholders, Mann said the Centre should constitute a committee comprising technical experts and representatives from the states to conduct a comprehensive study on the advantages and disadvantages of E20 fuel before making it mandatory.

The CM further alleged that engines originally designed to run on E10 fuel were shifted to E20 despite opposition from various quarters. Referring to a survey of over 45,000 vehicles, Mann claimed that 67% of vehicle owners reported a significant decline in mileage, while 45% complained of engine damage after using E20 fuel.

Calling the policy “an open loot of the hard-earned money of the common people”, Mann said consumers were being forced to bear higher repair and maintenance costs due to ethanol-blended fuel.

Mann also informed the House that AAP national convener Arvind Kejriwal had launched a public campaign against compulsory E20 fuel and submitted a petition carrying more than two-lakh signatures to the Prime Minister. He added that he had personally written to the Prime Minister, the Union home minister, the ministry of petroleum and natural gas and other authorities concerned, urging them to safeguard the interests of vehicle owners.

The Opposition Congress, while supporting a scientific review of the policy, questioned the state government’s own record on biofuel production.

Participating in the debate, Congress MLA Rana Gurjeet Singh said ethanol blending had evolved as an alternative fuel policy since 2001 and India had adopted the model after studying Brazil, where biofuel has been successfully used for nearly five decades. He said the government should not oppose ethanol blending outright but undertake an in-depth study to determine its benefits and shortcomings.

Rana Gurjeet also demanded that the Punjab government disclose the number of licences it had issued over the past four years for setting up grain-based ethanol production units in the state.

Congress MLA Avtar Henry junior demanded that the AAP government reduce Value Added Tax (VAT) on petrol and diesel, alleging that fuel taxes had been increased twice since the party came to power. He argued that lowering VAT would provide immediate relief to vehicle owners instead of merely passing resolutions against the Centre.

Jalandhar Cantt Congress legislator Pargat Singh urged the government to take the issue to its logical conclusion instead of limiting its response to passing resolutions in the assembly.

Cabinet ministers Harpal Singh Cheema, Ravjot Singh, Harjot Singh Bains and Hardeep Singh Mundian also participated in the discussion and demanded that the Centre allow consumers to choose between conventional petrol and ethanol-blended fuel instead of making E20 mandatory.

 
ABOUT THE AUTHOR
Gurpreet Singh Nibber

Gurpreet Singh Nibber is an Assistant Editor with the Punjab bureau. He covers politics, agriculture, power sector, environment, Sikh religious affairs and the Punjabi diaspora.

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