Archive · 29 Jul 2026
Fuel Dealers Seek OMC Compensation for E20 Testing Costs
Fuel dealers in India are asking the big oil companies to pay for the tests they have to do on a new type of petrol called E20.
E20 is petrol mixed with 20% ethanol, which the government says is better for the environment and helps farmers.
The problem is that the test to check if the E20 is good quality uses water, which makes the petrol unusable.
Dealers say this is a waste and the oil companies should pay for the lost petrol.
The oil companies haven't said much about it yet.
Some people are also upset because they think E20 makes their cars use more fuel and damages the engine.
The government says E20 is better in the long run and helps with energy security.
Fuel dealers are asking Oil Marketing Companies (OMCs) to bear the cost of quality checks for E20 fuel.
The current testing method involves adding water to E20 fuel, which causes phase separation and renders the sample unfit for use.
Dealers argue that the testing method is unscientific and leads to significant fuel wastage.
OMCs have not responded to queries regarding compensating dealers for the cost of testing.
The government is pushing for E20 fuel, claiming it burns cleaner, saves forex, and helps farmers.
- Who
- Fuel dealers and Oil Marketing Companies (OMCs)
- What
- Dispute over the cost and method of quality checks for E20 fuel
- When
- Ongoing, with recent communications and actions
- Where
- India, specifically involving fuel stations and OMCs
- Why
- To ensure the quality and integrity of E20 fuel, which is claimed to burn cleaner, save forex, and help farmers
Fuel Dealers
Oil Marketing Companies (OMCs)
Cost of Testing
Fuel Dealers
Dealers argue that OMCs should bear the cost of quality checks for E20 fuel as the testing method prescribed is destructive and leads to fuel wastage.
Oil Marketing Companies (OMCs)
OMCs have not publicly responded to the queries regarding compensating dealers for the cost of testing.
Testing Method
Fuel Dealers
Dealers claim the water-mixing method for testing E20 fuel is unscientific and results in fuel wastage, making it unfit for sale.
Oil Marketing Companies (OMCs)
OMCs have prescribed the water-mixing method as the standard testing protocol for E20 fuel quality checks.
Compensation for Losses
Fuel Dealers
Dealers demand compensation for the fuel lost during mandatory testing until scientifically validated testing equipment is provided.
Oil Marketing Companies (OMCs)
OMCs have not yet agreed to compensate dealers for the fuel lost during testing.
- E20 Fuel
- Petrol blended with 20% ethanol.
- Water-Mixing Method
- A testing method where water is added to E20 fuel to check ethanol content, causing phase separation and rendering the sample unfit for use.
- OMCs
- Oil Marketing Companies like Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd, and Hindustan Petroleum Corp. Ltd.
- BPDA
- Bihar Petroleum Dealers Association.
- Petrol Dealers Association, Punjab
- An association representing petrol dealers in Punjab.
- United Petroleum Dealers Association
- An association representing petrol dealers across 14 states.
- Petroleum Ministry
- The ministry responsible for petroleum policies and regulations in India.