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Petrol dealers seek relief from ethanol mandate during monsoon

Petrol dealers seek relief from ethanol mandate during monsoon

Time of India01-05-2025

Surat: Petrol dealers in South Gujarat have approached the Union Ministry of Petroleum and Natural Gas with a pressing request: exempt fuel stations in the region from the mandated 20%
ethanol blending
in petrol during the monsoon season. Citing frequent complaints of
fuel contamination
and engine damage, the dealers argue that high humidity and ethanol's water-absorbing properties are causing significant issues.
"Even with 15% ethanol, we get several complaints related to engine damage, petrol evaporation, and water contamination. Increasing the blend to 20% will only worsen the situation," said one local petrol dealer.
Dealers claim that during the monsoon, especially in coastal areas, humidity causes ethanol to absorb atmospheric moisture. This leads to the separation of ethanol from petrol, which they say is visible within seconds when a petrol tank is exposed to open air. The resulting water content not only degrades fuel quality but also damages engines—leaving dealers to deal with customer anger, complaints, and financial losses.
"The oil companies do not provide specialized storage tanks that could prevent moisture ingress. Yet, we are held responsible when customers face issues," said another dealer.
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The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has taken up the issue and submitted a formal representation to Union petroleum minister Hardeep Singh Puri.
In its letter, SGCCI stated, "Ethanol has hygroscopic properties, meaning it readily absorbs moisture from the atmosphere. During the monsoon, even with well-maintained and sealed underground tanks, the high humidity leads to ethanol drawing in moisture, effectively turning into water. This results in fuel contamination that severely affects engine performance and damages vehicles."
The letter further noted that petroleum dealers are unfairly blamed and even face police complaints due to circumstances beyond their control.
A member of the Surat Tapi District Petrol Pump Association (STDPPA) pointed out that the ministry had, in the past, granted temporary exemptions for ethanol blending in coastal regions during monsoons, but that policy has since been withdrawn, renewing challenges for local dealers.
The dealers now await a response from the ministry and hope for the reinstatement of the monsoon exemption to prevent further operational and reputational damage.

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