India's Chief Economic Adviser Proposes Return of E10 Petrol

Chief Economic Adviser V. Anantha Nageswaran and consultant Akash Poojari have called for the reintroduction of E10 petrol—containing 10% ethanol—alongside the current E20 blend to protect India's older vehicle fleet. Since April 1, E20 has been the sole fuel available at gas stations nationwide as part of a strategy to reduce crude oil imports and support domestic agriculture.

In an op-ed, Nageswaran and Poojari argued that approximately 75 to 80 million two-wheelers built before BS-IV standards use carburettors and rubber seals incompatible with E20. They stated that the higher oxygen content causes these engines to run hot and seals to degrade. While Nageswaran disputed claims of a 30% drop in fuel efficiency, noting the actual energy penalty is only 6% to 7%, he maintained that E10 would protect existing vehicles while a retrofit program is implemented. He also cautioned that blending beyond 20% could create competition between fuel production and food crops like maize.

The Ministry of Petroleum and Natural Gas has rejected the proposal, stating that maintaining multiple fuel grades across more than one lakh petrol pumps would create enormous logistical challenges and increase costs. State-owned oil marketing companies, including Indian Oil Corporation, defended the E20 rollout, characterizing reports of drastic engine damage as misplaced. The proposal also drew political attention, with former Delhi Chief Minister Arvind Kejriwal questioning if the government listens to dissenting voices within its own administration, while the All India Distillers' Association argued that E20 is a strategic imperative for national security.