India’s E20 Problem: Why The Govt’s Top Economic Adviser Wants E10 Back

India should consider bringing back petrol with a lower ethanol blend alongside E20 fuel, Chief Economic Adviser V Anantha Nageswaran has said, marking the first public call from a senior government official for greater fuel choice amid growing concerns over the country’s ethanol policy.

E20 petrol, which contains 20% ethanol, was introduced as part of the government’s strategy to reduce crude oil imports and lower emissions. Since April 1, it has been the only petrol variant available for sale at fuel stations across India.

The policy has nevertheless triggered concerns among vehicle owners over performance, fuel efficiency and the potential impact on older vehicles and their components.

CEA Suggests Bringing Back E10

In an opinion article published in The Indian Express, Nageswaran proposed making a lower-blend option such as E10 available alongside E20.

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

Such a move, he argued, could address concerns among owners of older vehicles while allowing the government to continue pursuing its ethanol-blending objectives through E20.

The suggestion is significant because senior government officials rarely publicly challenge or diverge from established policy positions. The Oil Ministry did not immediately respond to Reuters' request for comment.

The government had said last month that there was no proposal to bring back lower-ethanol petrol variants such as E0 or E10.

Older Vehicles At The Centre Of Debate

Nageswaran said available evidence does not support widespread fears that E20 directly damages engines. However, he pointed to concerns involving older vehicles, particularly components that may not have been designed for higher ethanol concentrations.

India has an estimated 75-80 million older two-wheelers, according to his opinion piece. Older vehicles may contain rubber seals and other components that are not rated for ethanol, creating a separate challenge from engine durability.

“India has roughly 75 to 80 million older two-wheelers ... older rubber seals that are not rated for ethanol are a separate problem,” Nageswaran wrote.

He argued that replacing or retrofitting such components across the existing vehicle fleet would take years.

E20 Debate Intensifies

The CEA’s comments come shortly after concerns over E20 intensified among automakers.

Reuters reported last week that major carmakers had privately discussed concerns related to fuel contamination before an industry association sent a complaint to the government, which was subsequently withdrawn.

Nageswaran said policymakers should focus on protecting vehicles already on the road while allowing time for retrofitting programmes to expand.

The proposal therefore does not call for abandoning E20. Instead, it suggests offering consumers a choice between different ethanol blends, particularly during the transition period for India's older vehicle fleet.