The mandatory rollout of E20 petrol (20 per cent ethanol blend) is affecting Punjab’s pre-owned automobile market as consumers are growing increasingly wary of reports of alleged damaged to engines and reduced mileage. The market is worth about Rs 1,000 crore and Punjab has 1.25 crore registered vehicles.On Tuesday, the Punjab Vidhan Sabha unanimously passed a resolution urging the Centre to suspend the compulsory use of E20 petrol in vehicles that are not designed for it.Additionally, potential buyers are reluctant to purchase used petrol vehicles, and are switching to electric or diesel alternatives, leaving second-hand dealers with mounting losses and stuck inventories.Dealers across the state report a clear shift in buyer behaviour.Amarjit Singh Birdi, owner of Peter Car Bazar, Ludhiana, said sale of petrol vehicles has been affected. “One of the vehicles recently sold developed a snag. The owner flagged a complaint, stating that soon after refuelling, the car developed a problem. We told him the car was sold after mandatory quality checks,” Birdi said, adding that it remains unclear whether such issues stem from the ethanol blend itself or from possible adulteration by fuel dealers.Manoj Makkar, a second-generation used-car dealer, pointed to anxiety created by official comments that ethanol-blended fuel would marginally reduce mileage.With petrol already above Rs 100 per litre, any drop in efficiency means higher running cost. “We started selling scooters in 1977 and have been selling used cars since the late 1980s. We have never seen such a slump, especially in petrol vehicles. Consumers are reluctant to buy premium-segment petrol cars. Even mid-segment inventories are stuck,” Makkar said.Pointing to a shift, Ravinder Sharma, another car dealer, said the push towards E20 has revived interest in diesel cars. “Earlier, diesel cars sold more. Then people shifted to petrol. Out of every ten vehicles, eight used to be petrol-powered. With the government pushing E20, people are once again showing interest in diesel-run vehicles,” he said.Owners of used cars said varying statements by Union ministers on the impact of E20 on vehicle mileage had added to the confusion.Nitin Gadkari, Union Road Transport and Highways Minister, informed the Rajya Sabha that BS-III vehicles (manufactured between 2005 and 2016) may require replacement of some rubber parts and gaskets when run on E20 petrol. However, he added that studies by Indian Oil Corporation Limited (IOCL), the Indian Institute of Petroleum, the Society of Indian Automobile Manufacturers and the Automotive Research Association of India (ARAI) found no major impact on overall vehicle performance.BS-VI vehicles continue to meet emission norms and even legacy vehicles showed no significant variations during drive and ignition, in metal or plastic compatibility, or abnormal wear-and-tear. Gadkari had added no engine modifications were found necessary for cars or two-wheelers.