Chandigarh, August 4, 2026 (Yes Punjab News)
Punjab Finance Minister Harpal Singh Cheema on Tuesday criticised the implementation of mandatory E20 petrol, raising concerns over vehicle damage, rising repair costs, water consumption in ethanol production and the impact of the policy on consumers.
Speaking in the Punjab Assembly during a discussion on the resolution moved by him seeking review of the E20 policy, Cheema said the Centre’s decision to advance the target for 20 per cent ethanol blending from 2030 to April 2026 had created difficulties for vehicle owners, particularly those using older vehicles.
Highlighting the scale of the issue in Punjab, Cheema said the state’s Transport Department has registered 1,25,88,851 two-wheelers, four-wheelers and commercial vehicles, apart from vehicles purchased from neighbouring states whose registration process is still underway.
He said forcing E20 fuel on states with a large number of existing vehicles was causing serious concerns among consumers. Referring to feedback from mechanics, Cheema said repairing vehicles damaged due to ethanol blending could cost between ₹25,000 and ₹50,000.
He said the policy could particularly affect delivery workers and small business owners who depend on their vehicles for livelihood, as frequent breakdowns could create additional financial burden.
Cheema also questioned the Centre’s decision-making process, alleging that the policy was implemented without adequate consultation with scientists, vehicle manufacturers, parliamentarians and the public.
Referring to ethanol production, the Finance Minister said it requires huge quantities of water and could pose a serious threat to Punjab’s already declining groundwater levels.
Cheema said the United States accounts for nearly 60 per cent of global ethanol production, while India’s share is around 5 per cent. He alleged that the policy was being implemented at the cost of Indian consumers and vehicle owners.
He also referred to comments made by Union Minister Nitin Gadkari in Parliament regarding a decline in fuel mileage due to ethanol blending, saying the actual impact on efficiency could be higher.
Highlighting public opposition to the policy, Cheema said a recent discussion organised in Delhi by AAP National Convenor Arvind Kejriwal witnessed participation of around 4,000 to 5,000 people physically and reached nearly seven lakh viewers online.
He said mechanics and experts from Uttar Pradesh, Bihar, Delhi, Punjab and Rajasthan participated in the programme and shared concerns regarding the impact of E20 fuel, showing that the issue had become a national matter requiring immediate review.
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