Chandigarh, August 4, 2026 (Yes Punjab News)
Punjab Finance Minister Harpal Singh Cheema on Tuesday criticised the Centre’s decision to implement mandatory 20 per cent ethanol-blended petrol (E20), alleging that the policy would burden consumers and vehicle owners while raising concerns over its economic and environmental impact.
Speaking in the Punjab Legislative Assembly during the discussion on the E20 resolution moved by him, Cheema said the implementation timeline was advanced from the original 2030 target and questioned the government’s decision to enforce the policy without addressing concerns related to vehicle compatibility, consumer costs and environmental sustainability.
Highlighting global ethanol production figures, Cheema said the United States accounts for around 60 per cent of global ethanol production while India contributes nearly 5 per cent. He alleged that the Centre’s policy was influenced by external interests and claimed that Indian consumers were being made to bear the consequences.
Emphasising the impact on Punjab, the Finance Minister said the state has 1,25,88,851 registered two-wheelers, four-wheelers and commercial vehicles, apart from vehicles purchased from neighbouring states that are still undergoing registration processes.
“Punjab has such a massive volume of legacy vehicles, and forcing E20 fuel on these vehicles is taking a heavy toll,” Cheema said.
Citing feedback from local mechanics, he claimed that repairing vehicles damaged due to ethanol blending could cost between ₹25,000 and ₹50,000. He said the lack of alternatives for owners of older vehicles could particularly affect delivery workers, small traders and people dependent on their vehicles for livelihood.
Cheema also referred to remarks made by Union Minister Nitin Gadkari in Parliament regarding a possible reduction in fuel mileage due to ethanol blending. He alleged that the policy was being implemented without adequate consultation with scientists, vehicle manufacturers, parliamentarians and the public.
The minister further raised concerns over the environmental impact of ethanol production, stating that it requires large quantities of water and could put additional pressure on Punjab’s already declining groundwater resources.
Highlighting public opposition to the policy, Cheema referred to a recent dialogue organised in Delhi by AAP National Convenor Arvind Kejriwal, which he said was attended by around 4,000 to 5,000 people physically and viewed by nearly seven lakh people online.
He said mechanics and experts from Uttar Pradesh, Bihar, Delhi, Punjab and Rajasthan participated in the discussion and raised concerns about the impact of E20 fuel on consumers.
Cheema said the widespread response showed that the issue was not limited to Punjab but was a national concern requiring immediate review by the Centre.
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