Raipur : Amid ongoing concerns over the use of E20 petrol, the Raipur District Consumer Disputes Redressal Commission has directed a car manufacturer to replace a complainant's vehicle with a brand-new one after it suffered severe engine damage allegedly due to the use of E20 fuel.
In what is being seen as a significant consumer rights ruling, the Commission held both the vehicle manufacturer and the dealer liable for deficiency in service, observing that the vehicle's engine was not compatible with E20 petrol.
According to the order, if the manufacturer fails to provide a new replacement vehicle, it must refund the full purchase price of the car amounting to Rs 20.50 lakh.
The Commission also directed the opposite parties to jointly pay Rs 1 lakh as compensation for mental harassment and Rs 10,000 towards litigation expenses, taking the total monetary liability to approximately Rs 21.60 lakh.
The commission has mandated compliance with the order within 45 days, failing which an annual interest rate of 7 per cent will be levied on the delayed amount. This historic decision is expected to serve as a major national precedent for consumer rights across India as the country transitions to ethanol-blended fuels.
The E20 controversy centres on the Indian government's mandatory, nationwide rollout of petrol blended with 20% ethanol. While intended to reduce crude oil imports and emissions, the policy has sparked backlash due to reported mileage drops, potential engine damage in older vehicles, and the lack of consumer choice at fuel pumps.
Meanwhile, Aam Aadmi Party (AAP) National Convenor and former Delhi Chief Minister Arvind Kejriwal wrote to Prime Minister Narendra Modi, urging the Centre to reconsider the rollout of E20 petrol for vehicles that were not designed to run on the ethanol-blended fuel.
In his letter, Kejriwal claimed that the use of E20 petrol in older vehicles has led to reduced mileage, faster engine wear, and an increased financial burden on vehicle owners whose cars and two-wheelers were manufactured before 2023. The AAP leader demanded that petrol stations provide consumers with an option to choose between pure petrol and E20-blended fuel. He also sought a reduction in the price of E20 petrol, arguing that the fuel's lower calorific value results in lower mileage.
Meanwhile, on July 10, the Centre, while responding to concerns over why consumers are not being offered a choice between pure petrol, E10, and E20 fuel, said that maintaining multiple petrol grades across India's vast fuel distribution network would create major operational and logistical challenges.
The Ministry said India's shift toward E20 was part of a planned transition after extensive consultations with automobile manufacturers, testing agencies, and other stakeholders. It added that the decision was based on technical evaluations covering vehicle compatibility, engine performance, emissions, and fuel efficiency.
Addressing the demand for the separate availability of pure petrol, E10, and E20 at fuel stations, the Ministry reiterated that India's fuel distribution system is not designed to operate multiple nationwide base fuel streams simultaneously.