Govt Considers E10 Petrol In Premium Octane 95 Variant Amid E20 Fuel Concerns

The government is exploring the possibility of offering E10 petrol through premium 95-octane fuel variants as concerns over E20 petrol continue to grow among vehicle owners, as per a report by Mint.

The proposal could allow fuels such as Indian Oil's XP95, Bharat Petroleum's Speed and Hindustan Petroleum's Power95 to be sold with 10% ethanol, the report said.

The move could provide an alternative for owners of older vehicles without requiring a separate nationwide distribution network for E10 petrol.

According to the report, the Union petroleum ministry is discussing the proposal with state-run oil marketing companies (OMCs) Indian Oil, BPCL and HPCL.

The discussions are at an early stage and no final decision has been taken.

The move comes amid persistent concerns over E20 petrol’s suitability for older vehicles and its potential impact on mileage.

While automakers have been manufacturing only E20-compliant vehicles since April 2023, demand for lower-ethanol petrol has continued to emerge among consumers with older cars and two-wheelers.

Premium 95-octane petrol currently costs around ₹110-115 per litre, compared with about ₹102 per litre for regular petrol in Delhi. as per the Mint report.

The share of such fuels in OMC petrol sales has risen to around 15% from 4% in March, as consumers concerned about E20 increasingly opt for premium fuels, it said.

At present, these 95-octane products also contain E20. A separate Octane 100 grade, which is largely used by luxury vehicle owners, does not contain ethanol but costs around ₹150-170 per litre, making it a significantly more expensive option, it added.

Reacting to the possibility of the E10 fuel rollout, the petrol dealers cited by Mint said the Octane 95 route could be received positively because existing infrastructure could potentially be used for E10, avoiding the need for extensive additional storage and dispensing facilities.

CEA Backs Lower-Ethanol Choice

The discussions follow Chief Economic Adviser V Anantha Nageswaran’s call for a lower-ethanol option at fuel stations.

In an Indian Express opinion article co-authored by CEA, published on August 17, he argued that restoring E10 alongside E20 could help address consumer concerns.

"Restoring a lower blend at the pumps, say, E10, alongside the option to buy E20, would calm most public concern," Nageswaran wrote.

Govt Opposes Multiple Fuel Streams

The petroleum ministry had previously rejected the idea of simultaneously stocking multiple ethanol blends nationwide.

In a statement on July 10, it said maintaining separate supply chains for pure petrol, E10 and E20 would create logistical and inventory-management challenges, raise handling costs and reduce operational efficiency.

The ministry said premium fuels were not directly comparable because they are niche products sold in limited quantities, rather than separate nationwide fuel streams.