Chief Economic Adviser suggests E10 option for older vehicles amid E20 debate
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Chief Economic Adviser V Anantha Nageswaran has proposed bringing back E10 petrol for older vehicles, while allowing newer vehicles to continue using E20 fuel as India pursues its ethanol-blending programme.
In an op-ed published in The Indian Express, Nageswaran and co-author Akash Poojari argued that owners of older vehicles should have the option of buying petrol with 10% ethanol.
Nageswaran said India has around 75-80 million two-wheelers designed for E10. Many older vehicles were not built for higher ethanol blends, he said, with potential compatibility issues involving rubber seals and other fuel-system components. Carburettor-based vehicles can also face difficulties with higher ethanol blends.
“Restoring a lower blend at the pump, say, E10, alongside the option to buy E20, would calm public concern, lower total ethanol use instead of raising it, and protect the existing fleet while the retrofit programme catches up,” he wrote.
The CEA also rejected claims that E20 causes a 30% reduction in mileage. He said ethanol accounts for one-fifth of the blend and the resulting energy penalty is around 6-7%. However, he acknowledged that older rubber seals not designed for ethanol can degrade on contact with the fuel.
India’s ethanol-blending programme is intended to reduce dependence on imported crude oil while creating a domestic market for ethanol produced from feedstocks including sugarcane and maize.
Nageswaran said the transition also raises questions about the cost for owners of older vehicles and the competing demands of fuel production for land, water and food.
The proposal drew a political response from former Delhi chief minister Arvind Kejriwal, who asked whether Prime Minister Narendra Modi would accept the CEA’s suggestion.
The ethanol industry has opposed any rollback. Kushal Mittal, vice-president of the All India Distillers’ Association, said energy policy should be guided by scientific evidence, testing and objective data. He said E20 was preceded by pilot trials and evaluations and remains important for India’s energy security, domestic biofuel industry and farmers.