Will the government give in and reinstate E10 gasoline? We are evolving


The Centre’s decision to make E20 petrol mandatory, which drew opposition from a section of vehicle owners, could potentially be followed by the return of E10 as an additional fuel choice. Days after Chief Economic Adviser V Anantha Nageswaran supported bringing E10 back, The Indian Express reported on Wednesday that the government had begun discussions on whether E10 could once again be made available.

According to the report, preliminary talks have started within the government and with automobile and fuel industry representatives to assess the possibility of selling E10 alongside E20. The discussions began shortly after Nageswaran endorsed the option, particularly for older vehicles, in an article published in the newspaper. No final decision has been made and the talks remain at an early stage.

The development is noteworthy because the government had until recently rejected the possibility of bringing E10 back, even as the accelerated rollout of E20, five years ahead of the original 2030 target, triggered widespread criticism.

E20 petrol contains 20% ethanol and 80% petrol, while E10 has a 10% ethanol blend. The government has said India reached an average ethanol blending level of 20% during 2025-26 as part of efforts to reduce crude oil imports, lower emissions and boost farmers’ incomes.

However, the implementation of E20 has raised concerns among owners of vehicles manufactured before 2023 that were not designed for the higher ethanol blend. Motorists have complained about reduced mileage and potential effects on engine components, particularly fuel injection systems. More than 80% of vehicles in India were reportedly not E20-compliant when the government made 20% ethanol blending mandatory. Vehicle owners have therefore been demanding access to E10 until older vehicles are gradually phased out.

The government, however, has maintained that there is no evidence linking E20 to engine damage.

The issue has also attracted increasing political criticism. Samajwadi Party chief Akhilesh Yadav on Wednesday referred to Nageswaran’s support for restoring E10 as an option for older vehicles and questioned the government’s position.

“Who is right? The government or the adviser?” Yadav asked on X, while sharing a post claiming that E20 was damaging vehicles and calling for E10 to be made available again for older two-wheelers.

Congress MP Randeep Singh Surjewala also said the Chief Economic Adviser had highlighted shortcomings in the government’s E20 policy. He accused the Centre of introducing E20 without adequate preparation and questioned why motorists were being subjected to what he called a “forced experiment”. Surjewala also asked the Narendra Modi government when regular petrol would become available again.

E10 RETURN BEING CONSIDERED: REPORT

The Indian Express reported that preliminary discussions were taking place to determine whether E10 could once again be offered to consumers. The proposal does not involve replacing E20, but rather allowing E10 to be sold alongside it, particularly for older vehicles designed to operate on lower ethanol blends.

A dual-fuel system would require oil companies and the government to address additional storage, transportation and dispensing arrangements for two different petrol blends.

Nageswaran has also called for a careful assessment of the food, feed, land and water implications before India considers increasing ethanol blending to E27 or E30.

The emerging discussions represent a shift from the government’s earlier stated position.

On July 23, the Petroleum Ministry had said there was no proposal to return to E0 or E10 petrol, arguing that E20 had been scientifically validated and accepted by the automobile industry following extensive testing. The ministry maintained that policy should move towards a superior fuel rather than revert to what it described as an inferior standard.

The government has also argued that maintaining multiple petrol grades would create additional logistical and infrastructure challenges.

The reported discussions at the government level came shortly after Nageswaran publicly backed the idea of restoring E10.

CHIEF ECONOMIC ADVISER SUPPORTS E10

In an article in The Indian Express, co-authored with consultant Akash Poojari, Nageswaran argued that owners of older vehicles should have the option of purchasing E10 while India continues its ethanol-blending programme.

He raised particular concerns about older two-wheelers whose components were not designed to handle higher ethanol concentrations. Nageswaran suggested that E10 could remain available while a retrofit programme is developed for such vehicles.

The article noted that India has approximately 75-80 million older two-wheelers and pointed to the issue of older rubber seals that may not be suitable for ethanol. Retrofitting such components, it said, could take several years.

The article argued that New Delhi should protect the existing vehicle fleet until the retrofit programme catches up.

Nageswaran’s intervention was significant because it came from the government’s own chief economic adviser while the Centre continued to defend its E20 policy.

A day later, The Times of India reported that government officials were surprised by Nageswaran’s recommendation. According to the newspaper, officials said there had been no government-level discussion about such a move until then.

They also pointed to the practical difficulties of selling E10 alongside E20, including the need for additional infrastructure and complications involving pricing and distribution. One official reportedly argued that making E10 available could be interpreted as an admission that E20 was unsuitable for older vehicles, a position rejected by the government.

WHY HAS E20 FACED OPPOSITION?

The transition to E20 has faced criticism from motorists, particularly over reduced mileage and concerns about the effect of the higher ethanol blend on older vehicles.

The government has acknowledged that vehicles designed for E10 could experience some loss in fuel efficiency when using E20. However, it has rejected allegations of widespread engine damage, saying testing and data from the automobile industry do not support such claims.

The Centre has emphasised the economic advantages of ethanol blending, including lower dependence on imported crude oil, foreign exchange savings and additional income opportunities for farmers.

At the same time, the decision to impose a single fuel blend on vehicles designed to operate with different ethanol concentrations has drawn criticism.

Motorists have complained about the rapid implementation of E20, with some reporting lower mileage while others have objected primarily to the lack of choice.

A citizens’ pressure group led by political commentator Tehseen Poonawalla, Team Bharat, has campaigned against mandatory E20 and demanded that consumers be given alternatives, including E10 for vehicles designed to use it. The group has also held discussions with the Petroleum Ministry and announced protests over the issue.

The group has clarified that it is not opposed to ethanol itself, but objects to making E20 the sole option and introducing it at such a rapid pace.

Questions have also been raised over the government’s claims regarding foreign exchange savings, benefits to farmers and the overall economics of ethanol blending.

The government is therefore not considering abandoning E20. The issue under discussion is whether consumers, especially owners of older vehicles, should also have access to E10.

With Nageswaran supporting the proposal and preliminary discussions now underway, E10 — a fuel option the Centre had previously ruled out — could potentially return to petrol pumps alongside E20.


 

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