E10 petrol may return for older vehicles, but at a premium price: Report

The government is considering bringing back E10 petrol for owners of older vehicles, but instead of creating a separate fuel category, it may offer the lower-ethanol blend through existing premium petrol brands, according to an exclusive report by Mint.

The proposal is being discussed by the petroleum ministry with state-run oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. The discussions are still at an early stage and no final decision has been taken, the report said.

Premium petrol could offer an E10 option

Under the proposal, premium 95-octane fuels such as Indian Oil’s XP95, Bharat Petroleum’s SPEED and Hindustan Petroleum’s Power95 could be sold with a 10% ethanol blend.

The move is aimed at addressing concerns among owners of older vehicles, many of which were designed for E10 petrol, while avoiding the need to build a separate nationwide storage and distribution network.

“Options are being looked at in order to offer the more appropriate E10 fuel for older vehicles and allay the consumer concerns,” one person cited by Mint said.

A second person said officials and oil companies were also examining whether motorists would prefer a premium-priced E10 fuel or a cheaper regular E10 option.

E20 concerns drive the discussion

E20 petrol, which contains 20% ethanol, is now the standard petrol blend at fuel stations across India. The government has maintained that the fuel does not cause widespread vehicle damage.

In July, it said vehicles designed for E10 could experience a marginal 3-5% reduction in fuel efficiency when using E20, while rejecting claims of widespread engine failures or breakdowns caused by ethanol blending.

However, concerns over mileage and compatibility have continued, particularly among owners of older vehicles. The debate gained further attention after chief economic adviser V Anantha Nageswaran called for a lower-ethanol petrol option to be made available alongside E20.

Existing infrastructure could be used

Premium petrol brands already have dedicated infrastructure at fuel stations. Mint reported that such fuels now account for around 15% of OMC petrol sales, compared with about 4% in March.

“Providing ‘95 Octane’ branded fuels with 10% ethanol is quite easy for OMCs. No need to change tanks or delivery units,” Monty Sehgal of the Federation of All India Petroleum Traders told the publication.

A separate nationwide E10 fuel stream would require additional storage and distribution infrastructure, making the premium-fuel route a potential workaround.