The mandatory rollout of E20 petrol (20 per cent ethanol blend) is affecting Punjab’s used-car market—the largest in the region and worth about Rs 1,000 crore.On Tuesday, the Punjab Vidhan Sabha unanimously passed a resolution urging the Central Government to suspend the compulsory use of E20 petrol in vehicles that are not designed for it.The pre-owned vehicle market is witnessing an unprecedented slump as buyers grow increasingly wary of petrol-run models, while ethanol blending has also left new vehicle owners anxious. Punjab has around 1.25 crore registered vehicles.Buyers are increasingly reluctant to purchase used petrol vehicles and are switching to electric or diesel alternatives, leaving second-hand dealers with mounting losses and unsold inventories.Dealers across the state report a clear shift in buyer behaviour.Amarjit Singh Birdi of Peter Car Bazar, Ludhiana, said sales of petrol vehicles have 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 possible fuel adulteration by dealers.Manoj Makkar, a second-generation used-car dealer, said anxiety has grown after official comments that ethanol-blended fuel could marginally reduce vehicle mileage. With petrol already priced above Rs 100 a litre, even a slight drop in fuel efficiency translates into higher running costs.“We started selling scooters in 1977 and have been selling used cars since the late 1980s. We have never witnessed such a slump, especially in petrol vehicles. Consumers are reluctant to buy premium-segment petrol cars, and even mid-segment inventories are stuck,” Makkar said.Pointing to a renewed preference for diesel vehicles, another dealer, Ravinder Sharma, said the push towards E20 has revived demand for diesel cars.“Earlier, diesel cars sold more. Then people shifted to petrol. Now, out of every ten vehicles, eight used to be petrol-powered. With the government pushing E20, people are once again showing interest in diesel,” he said.Owners of used cars said varying statements by Union ministers on the impact of E20 on vehicle mileage have added to the confusion.Road Transport and Highways Minister Nitin Gadkari 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.He, however, 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.According to Gadkari, BS-VI vehicles continued to meet emission norms, while even legacy vehicles showed no significant variations in drivability, startability, metal or plastic compatibility, or abnormal wear and tear. He also stated that no engine modifications were found necessary for either cars or two-wheelers.